Maïa Ferrand, Co-Head of External Multi-Management at the multi-asset manager Candriam, believes that private investments are essential for preserving natural resources. In the new Candriam publication „Investing in Natural Capital: Challenges and Opportunities,“ the expert explains why. The Natural Capital Coalition defines natural capital as „the stock of renewable and non-renewable natural resources (e.g. plants, animals, air, water, soils, minerals) that together provide benefits to people,“ meaning it is the source of everything that surrounds us. For Ferrand, it is also humanity’s greatest asset. However, she warns that with the current consumption levels and without the invention and deployment of groundbreaking technologies, a large part of the resources essential for our present lives will eventually disappear.
There is typically a cyclical relationship between natural capital and climate change, which can have either positive or negative effects. Natural capital is needed to avoid exacerbating climate change and to accelerate its mitigation. Therefore, our plans to mitigate climate change should not only focus on carbon dioxide but also consider all planetary boundaries. In recent years, sustainability efforts have mainly focused on decarbonization, while there is a significant funding gap for biodiversity and ecosystems.
In 2021, the United Nations Environment Programme called for tripling investments in nature-based solutions by 2030 to achieve goals in climate change, biodiversity, and soil degradation. Although climate financing is distributed between public funds and private capital, it is still primarily the public sector that provides funding for nature-based solutions. The expert explains in the new Candriam publication „Investing in Natural Capital: Challenges and Opportunities“ why private capital is crucial here and how private investors can support this urgently needed transformation.