Biodiversity Offers Natural Capital

Although most companies publicly pride themselves on their climate actions, few market their biodiversity efforts, say MJ Hudson’s Tom Timmerman, a principal in the ESG and sustainability business unit, Sydney Straver, a senior consultant on the ESG team, and Basil van Wijk, a consultant in the ESG and sustainability team. Strategically positioning themselves as organizations that prioritize biodiversity showcases efforts that work towards living in harmony with nature. This can create value by attracting and retaining customers that increasingly have sustainability top of mind. Humans are directly dependent on rich biodiversity and the resources provided by the natural environment. These resources are known as natural capital and provide essentials, such as freshwater and land, as well as services, including crop pollination and carbon absorption. Investors can view natural capital through the lens of value creation through supply chain resilience, land valuation, and strategic positioning.