Natural Capital Explained: Understanding its Importance and Role

4 Apr 2025 Reading time: mins

Our Natural Capital Investment Directors, Alex Godfrey and Gabi Slemer explain natural capital, the role of carbon credits, and the necessity of due diligence.

What is natural capital?

Nature underpins our economy – but it’s often overlooked. 

So, what exactly is natural capital?

Natural capital helps us value ecosystems like forests, wetlands, and soils, recognising their role in carbon storage, biodiversity, and water security. 

Why is Natural Capital important?

Nature is the foundation of life as we know it

Yet, for centuries, we’ve treated it as if its resources are limitless. But the truth is, our planet has limits – and we’re starting to feel the effects. 

To thrive, we must restore the natural systems we depend on, working with nature instead of depleting it. 

Investment in natural capital is key to driving this shift toward a sustainable future.

What is a carbon credit?

 What are carbon credits – and how do they work? 

A carbon credit represents one tonne of CO₂e – they are used by businesses to offset hard to abate residual emissions to reach net zero.

Why it’s important to do your due diligence

Carbon credits have a reputation problem. Years of greenwashing and low-quality projects have left businesses wary.  

But avoiding them isn’t the solution – doing your due diligence is. 

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