Nature: The Next Big Asset Class? Why the Economy Depends on It

by Andrew Laxton, CEO and Founder, Mixology PR:

For too long, nature has been seen as separate from economic success, a nice-to-have rather than a must-have. But that outdated mindset is finally shifting. Nature isn’t just the foundation of life; it’s fast becoming one of the most valuable asset classes of the future.

Yet natural capital remains largely overlooked by journalists and analysts. This isn’t surprising, we’re conditioned to associate nature with climate change and net zero when, in reality, its impact on the economy and society runs much deeper. So how do we change this? By broadening the conversation and ensuring businesses see that protecting nature isn’t just a moral duty – it’s a financial imperative.

From Buzzword to Business Model

Alex Godfrey, Natural Capital Investment Director at Octopus Capital, puts it simply:

“Nature positive has moved from a buzzword to a necessity.”

Companies and investors are beginning to recognise the financial risks of biodiversity loss. Frameworks like the Task Force on Climate-related Financial Disclosures (TCFD) and the Taskforce on Nature-related Financial Disclosures (TNFD) are highlighting these risks – not just for ecosystems but for investment portfolios, too. As Godfrey points out:

“Investors are becoming increasingly aware that failing to account for biodiversity loss poses financial, reputational, and operational risks.”

In other words, businesses that don’t adapt will find themselves left behind.

Greenwashing Won’t Cut It, Action Will

The Green Alliance recently released a paper calling on the UK government to introduce mandatory nature risk reporting. The logic is simple: making it a legal requirement for businesses to disclose their impact on nature would incentivise real investment in biodiversity protection and restoration.

But here lies the problem. We have policymakers that love making announcements. And too often, that’s where it stops. Change doesn’t happen through well-crafted press releases – it happens through action and constant communication. The sooner nature risk reporting becomes mandatory, the sooner it becomes the norm. And when it becomes the norm, behaviour shifts permanently.

The Financial Case for Protecting Nature

Writing in his newsletter Nature’s Network recently, Rich Stockdale, CEO of Oxygen Conservation, made a compelling case for treating nature as a serious financial asset:

“For decades, we’ve tried to save the planet with donations, grants, and goodwill. Meanwhile, deforestation, biodiversity loss, and emissions continue to accelerate. But what if polluters had to pay a real cost for the damage they cause? What if restoring ecosystems was more profitable than extracting resources? What if nature wasn’t just protected, but turned into a high-value asset class? We don’t need more charity. We need a system where protecting nature is the smartest financial decision on the table.”

Stockdale is right. This isn’t about donations or goodwill – it’s about cold, hard economics. Microsoft and BlackRock are already investing heavily into natural markets behind the scenes. Why? Because they see the potential. In 2022, McKinsey estimated that nature markets made up $9.8 trillion worth of goods and services – equivalent to 11 percent of global GDP. Others estimate the value of global natural capital to be closer to $125 trillion.

Think of it this way: The Beverley Hillbillies struck it rich with black gold. Today, the smart money is shifting to green gold – nature. Carbon credits, biodiversity banking, ecosystem restoration – these aren’t just environmental initiatives, they’re economic opportunities.

The Economy and the Environment Are No Longer Separate Conversations

For too long, economic growth and environmental protection have been treated as opposing forces. But that thinking is outdated. The economy doesn’t just depend on nature; it thrives because of it.

Take linear motor control technology – an innovation in decarbonised transportation. It sounds complex, but at its core, it relies on one fundamental natural force: magnetic energy. Similarly, spectral analysis, used in diagnostics, relies on the physics of light. These aren’t new discoveries; they’re applications of natural forces that have existed forever. The same applies to nature itself – it’s always been valuable; we just haven’t quantified it properly.

The Path Forward: Communicate Your Actions

Over-complication can be an unnecessary evil. The best way forward is to get back to basics and start talking about it with comms taking a lead on how best to do it and via which channels. So, what has worked in the past to bring about real change?

* Mandatory reporting – Just as financial disclosures became the norm; nature risk reporting must follow.

* Financial incentives – Governments should reward businesses for investing in biodiversity.

* Market-driven solutions – The private sector should be encouraged to see natural capital as a lucrative asset class, not just a charitable cause.

Trump’s chaotic approach to climate policy – pulling out of the Paris Agreement, scrapping environmental protections, and suspending all funding under the Inflation Reduction Act – may have set things back, but it hasn’t changed the fundamental truth. Our planet is hurting. But the very thing that keeps us alive – nature – can also be the foundation of future economic prosperity. 

That’s not just an argument for environmentalists. It’s a business case everyone should be paying attention to.

With over 55% of global GDP (around $58 trillion) reliant on nature and biodiversity, the financial world is waking up to a stark reality: nature isn’t just an asset; it’s the foundation of our economy.

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A former journalist with 30 years’ experience across PR and communications, Andrew Laxton is passionate about positioning brands that make a positive impact on the world. From discovering trends for market growth to developing corridors for international expansion, Andrew creates strategies for business leaders that engage audiences, build trust, and strengthen brand reputation.

Written by: Editor