# Why It Makes Business Sense to Invest in Natural Capital

Nature powers the global economy, yet its value rarely appears on company balance sheets. That’s now changing as businesses view nature not just as an environmental concern but as a core asset worth protecting.

Around [85%](https://www.spglobal.com/sustainable1/en/insights/special-editorial/how-the-world-s-largest-companies-depend-on-nature-and-biodiversity) of the world’s largest companies rely directly on nature. Think about it: natural resources and crops fuel supply chains, minerals underpin technology and renewable energy, forests regulate climate, water sustains life. And yet, these natural systems are under immense strain. [**A fifth**](https://www.weforum.org/stories/2025/06/natural-capital-economic-resilience-global-stability/) **of the world’s countries are at risk of ecological collapse** and only 3% of ecosystems remain intact. If nature-based sectors continue to decline, the World Bank estimates the global economy could lose [$US2.7 trillion](https://www.worldbank.org/en/topic/natural-capital) by 2030.

Part of the problem is value blindness. For decades, companies have invested heavily in infrastructure that harms nature and underfunded regenerative business models that could restore it. Today, though, more are waking up to the truth that their most important asset has always been the natural world.

## Recognizing Nature as a Business Asset

Every industry has a hidden balance sheet tied to nature. Agriculture depends on healthy soils and pollinators. Fashion relies on petroleum-based synthetic materials, natural fibers, water and dyeing processes. Technology and renewable energy are inseparable from [critical materials](/sustainability/critical-materials-value-network "Unify Both Macro and Micro Views of the Critical Materials Lifecycle") mined out of the ground. And pharmaceuticals trace many of their compounds back to biodiversity-rich rainforests.

Natural capital accounting is a way to understand and quantify the benefits nature provides to businesses. It treats ecosystems as assets and makes them part of the business ledger so that companies are compelled to address regulations proactively, secure resource supplies, retain the trust of investors and consumers, and unlock competitive advantages. It's a smart way to balance business goals and environmental impact.

The concepts of natural capital and the value of natural capital isn’t new, yet perceptions and policies are pushing it higher up the corporate agenda. Frameworks like [the UN’s System of Environmental Economic Accounting (SEEA)](https://seea.un.org/) proactively encourage nation states to track and manage their reliance on nature, while giving investors the data they need to factor ecological risks and opportunities into business strategy and funding decisions.

China now tracks a gross ecosystem product (GEP) alongside gross domestic product (GDP) to guide investment in restoration and set up eco-compensation between regions. Uttarakhand – a state in India – followed suit, and Gabon in Africa now considers natural capital accounting in all national development planning.

## Natural Capital Impact

 [![Lush green forest landscape representing natural capital and biodiversity for sustainable circular economy strategies](https://www.3ds.com/assets/invest/2026-08/natural-capital-impact.jpg)](https://www.3ds.com/assets/invest/2026-08/natural-capital-impact.jpg)

## Investing in Technology to Understand Impact and Value

Even with policies and frameworks in place, many businesses still struggle to see how their operations affect nature. And yet we know that human activity drives all five major causes of biodiversity loss, as identified by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services:

## Land use and sea use change

 ![](https://www.3ds.com/assets/invest/2026-08/icon-458-discover-resources-blue-rvb.png)

## Climate change

 ![](https://www.3ds.com/assets/invest/2025-02/icon-378-deposit.png)

## Over-exploitation of natural resources

 ![](https://www.3ds.com/assets/invest/2026-08/icon-462-transportation-blue-rvb.png)

## Pollution

 ![](https://www.3ds.com/assets/invest/2025-10/icon-428-customized-products-blue-rvb.png)

[Digital technologies make the unseen or overlooked visible.](/sustainability/business-biodiversity/restore-biodiversity-technology "Can Technology Help Restore Biodiversity and How?") Virtual twins, for example, can model complex “systems of systems” – interconnected networks that span supply chains, ecosystems and operational processes, and even link to product-level granularity, to reveal how decisions have a broader impact. A virtual twin of a mining operation might, for instance, simulates the measurement of relevant key performance indicators, such as pollution, carbon emissions and raw material usage. In energy, it might help to balance between the need to keep pace with fast growing demand for renewables and environmental stewardship.

##  Why Is Bringing Nature Into Circular Business Strategies Important?

The [circular economy](/sustainability/circular-economy "Circular Economy") designs out waste, keeps products and resources cycling at their highest value, and restores the natural systems that provide them in the first place. A[ circular bioeconomy](https://www.3ds.com/sustainability/business-biodiversity/circularity-biodiversity) takes this even further: it is a new economic model powered by nature.

In a circular bioeconomy, businesses go beyond recycling initiatives and waste audits and focus on developing products and systems that actively give back to nature. What does this look like in practice? It could involve designing for [durability](/sustainability/circular-economy/product-durability "Optimize Product Durability to Transcend Take, Make and Waste") and [disassembly](/sustainability/circular-economy/design-for-disassembly "Design for Disassembly in the Age of Circularity") to keep product in circulation, replacing fossil-based materials with renewable, bio-based alternatives and looping biological resources back into the system so nothing goes to waste. Done right, it creates supply chains where every cycle strengthens ecosystems instead of depleting them. To get there, companies need to experiment with new bio-based materials, adopt service-driven models, optimize logistics and embed circular design at every stage.

[Biodiversity Reducing Harm](/media/25714)

The question we need to ask ourselves is: how can we start making these changes today?

Some companies are already leading the way in pioneering sustainable solutions. For example, [Cgreen](/3dexperiencelab/portfolio/cgreen-bio-based-carbon-fiber "CGreen Bio-based Carbon Fiber") is transforming the materials industry with its innovative bio-based carbon fiber. Unlike traditional carbon fibers, which rely heavily on fossil fuels, Cgreen's solution is derived from renewable raw materials, significantly reducing its environmental impact. This breakthrough not only supports environmental restoration but also delivers exceptional material performance, making it suitable for high-demand applications like automotive, aerospace, and renewable energy.

Now, we need to scale these innovations to create a more significant impact and prioritize natural capital as a core business imperative.

## How to Make Natural Capital a Business Priority

Corporate sustainability has long been framed around reduction, such as lowering emissions, cutting down on waste and having smaller carbon footprints. Those actions remain vital, since they slow the damage being done to the planet.

But what if businesses focused on regeneration as well? A lot more could be done. By redirecting investment into practices like reforesting degraded land, restoring mangroves to protect coastlines, or redesigning agriculture for soil health, companies can create business models that leave nature stronger than before and boost their operational resilience in the process.

## Measure clearly

Most organizations don’t fully grasp their footprint on biodiversity. Without data, strategy is blind. Measurement is the first step to bringing nature into business planning and earning stakeholder trust.

## Value natural capital properly

Natural capital accounting translates the benefits of ecosystems into financial terms, giving boards, regulators, and investors a shared way to understand and act on nature’s value.

## Set clear targets

Use credible frameworks to pinpoint where operations intersect with ecosystems, from supply chains to product lifecycles. Goals must then be specific, measurable and tied to real outcomes.

## Monitor and adapt

Adopt technology such as virtual twins and lifecycle assessment analysis capabilities help companies track progress, test new ideas and adapt strategies as they go.

Following these steps turns good intentions into action. Indeed, once nature is factored into everyday decision-making, business as usual looks very different and companies position themselves to thrive in a world where ecological health and economic resilience go hand in hand.

## Frequently Asked Question on Nature Capital

## What is natural capital and why does it matter to businesses?

Natural capital refers to the world's stocks of natural assets—including soil, water, air, forests and biodiversity—that provide goods and services essential to human well-being and economic activity. Around 85% of the world's largest companies rely directly on nature, making natural capital a core operational dependency, not a peripheral environmental concern.

Unlike financial or manufactured capital, natural capital is rarely reflected on corporate balance sheets, which creates a dangerous blind spot. When ecosystems degrade, businesses face supply chain disruptions, rising input costs and growing regulatory exposure. Treating nature as a measurable business asset is the first step toward managing that risk.

## What are the biggest business risks of biodiversity loss?

Biodiversity loss poses direct financial and operational risks to businesses, including supply chain fragility, increased resource costs and regulatory non-compliance. The World Bank estimates the global economy could lose $2.7 trillion by 2030 if nature-based sectors continue to decline at current rates.

Key risk categories include:

- **Supply chain exposure**: Agriculture, pharmaceuticals and manufacturing all depend on ecosystem services that healthy biodiversity supports
- **Regulatory risk**: Frameworks like the Corporate Sustainability Reporting Directive (CSRD) now require European companies to report biodiversity impacts and dependencies
- **Reputational damage**: Investors and consumers increasingly scrutinize companies' ecological footprints
- **Resource scarcity**: Global material extraction is expected to double by 2060, intensifying competition for finite natural inputs

## What are the solutions for businesses to reduce their impact on natural capital through circular economy strategies

Circular economy strategies help reduce pressure on natural capital by keeping materials in use longer, cutting demand for virgin resource extraction, and eliminating waste from production systems. Since 90% of biodiversity loss happens at the start of the value chain—during resource extraction and processing—circular design can significantly benefit ecosystems.

Practical solutions include:

- **Eco-Design for Biodiversity**: Designing products for durability, repairability, and recyclability from the start lowers lifecycle impacts
- **Sustainable Sourcing**: Supply chain traceability tools allow businesses to identify and switch to responsibly sourced materials
- **Bio-Based Alternatives**: Replacing fossil-based materials with renewable inputs—like Cgreen’s bio-based carbon fiber—reduces environmental harm while maintaining performance
- **Closed-Loop Systems**: Product-as-a-service models and reverse logistics keep materials in circulation, lowering the need for resource extraction

The World Economic Forum estimates bio-circular business models could create $10 trillion in new business value by 2030.

## Related Content

## Biodiversity Through Circularity

With virtual twin-powered strategies, businesses can protect biodiversity while unlocking new revenue streams.

[Discover](/sustainability/business-biodiversity/circularity-biodiversity)

## Biomimicry

Explore the stories of two innovators drawing inspiration from marine life to produce green energy, and to clean up floating plastic in the ocean.

[Learn more on Biomimicry](/progress-is-human/water-and-consumption/biomimicry)

## Restore Biodiversity with Technology

As biodiversity faces growing threats, can technology truly reshape how we preserve and restore ecosystems through innovative solutions?

[Learn more on Biodiversity Technology](/sustainability/business-biodiversity/restore-biodiversity-technology)

## Measurable Sustainability Benefits

Discover how our certified methodology provides the rigorous framework needed to accurately quantify and verify the ESG impact of your digital transformation.

[Discover](/sustainability/measurable-sustainability-benefits)

 ![Why It Makes Business Sense to Invest in Natural Capital](https://www.3ds.com/assets/invest/2026-08/hb-natural-capital.webp)

Natural Capital