Finance

Integrating Natural Capital into Finance

​Nature is a core driver of financial risk and return. Ecosystem degradation – and the policy response to it – is eroding business value, yet this risk is unpriced. At the same time, the nature transition is creating opportunities for capital deployment, product innovation and improved risk-adjusted returns. Decision-useful analysis requires going beyond dependency and impact mapping to assessing the likelihood and severity of nature-related issues: for banks this means both credit risk and commercial opportunity to support client transition; for insurers, premium mispricing alongside product innovation; for investors, value-at-risk but also mandate-winning differentiation; and for development finance, the mobilisation of capital toward outcomes that benefit nature.​

We help embed nature into finance. Drawing on more than 15 years of experience, we support financial institutions and their portfolio companies – working at the site level  and along value chains  – to understand, manage and act on nature-related risks and opportunities, so that nature considerations are integrated into strategy, risk management and capital allocation​

Our services: measuring, managing and capitalising on nature risks and opportunities​

Measurement​

We enable financial institutions to understand and measure what matters most about nature for their portfolios and business models. Our services – including assessing portfolio vulnerability to ecosystem degradation, forward-looking views of where nature is degrading, and advice on KPIs to measure contributions to nature positive – support nature issue prioritisation, product development and the assessment of financial risks and opportunities.​

Management​

We advise on scientifically robust, commercially compelling actions that embed nature in finance. Our support shapes a wide range of decisions: from board-level guidance to set strategy, through front-office capability building to support client and investee engagement, to the design of sector policies, transaction screening criteria, risk management frameworks, nature finance taxonomies and investment strategies.​

Capitalisation​

By linking measurement and management to outcomes, we enable clients to take action and make financial decisions that are beneficial for nature and financial performance.  ​

Our track record​

The Biodiversity Consultancy has supported a wide range of financial institutions to evaluate their exposure to nature-related risks and opportunities, identify priority actions, and embed nature into operations, risk management and financial decision-making. Our clients include commercial banks, insurers, asset owners, asset managers (both of public and private assets)and development banks.​