Right now, the global economy is in a state of uncertainty. Markets are falling. Google searches on words like ‘tariffs’ and ‘recession’ are spiking. And everyone is thinking about safe havens.
What could be a better safe haven than nature?
All of us turn to nature in a time of need, seeking solace, peace, wonder or awe. A study from the World Health Organization shows that time in nature, including in urban areas, improves our mood, mindset and mental health. And this article from the journal Frontiers in Psychology suggests that urban green spaces provide restorative psychological benefits.
There are economic benefits from investing in nature too.
A recent article by Natalie Nicholles for Reuters suggests that the companies embedding natural capital in their decision making are reaping the benefits. Nicholles lists Natura, Orsted, Olam, Novartis and Holcim as examples of companies that are seeing the economic benefits in terms of the lower cost of capital.
Nicholles writes:
‘Natura &Co, a Brazil-based global cosmetics company, last year secured a $1.3 million real sustainability-linked debenture tied to using bio-active ingredients from the Amazon in its products. Olam, a leading global agri-business company headquartered in Singapore, grew its sustainability-linked loans from $500 million in 2018 to $1.75 billion in 2023.’
Meanwhile, the world’s largest sovereign wealth fund, Norway’s Government Pension Fund Global, which runs $1.6 trillion in assets, has just published new assessments of its nature risk, looking at how companies in its portfolio impact and depend on natural capital.
In the Fund’s recent report, 2024 Climate and nature disclosures, Norges Bank Investment Management writes:
‘Natural capital, which includes plants, animals, air, water, soil, and minerals, provides a constant flow of benefits to people and supports economic development. These ecosystem services supply essential goods like fuel, food, and clean water and help maintain processes such as nutrient cycling, pollination, climate regulation, and protection from natural hazards.
Maintaining these ecosystem services is crucial for a liveable world. Understanding this complex interplay is key for ensuring food and energy security, reducing carbon emissions, and preserving ecosystems’ adaptive capacity – and hence for managing the fund’s long-term investments.’
As the world navigates financial storms coupled with increasing climate risk, investment in the safe haven of nature becomes paramount.
Let’s shift our investment focus to the natural world and secure the benefits it provides us all.
As Sir David Attenborough said:
‘The truth is: the natural world is changing. And we are totally dependent on that world. It provides our food, water and air. It is the most precious thing we have and we need to defend it.’
