Natural capital refers to the natural resources and ecosystems that provide benefits to humans and the economy. These include air, water, soil, plants, animals, minerals, and energy resources that are used for various human activities and industries.
The term "capital" is used because natural resources and ecosystems provide a range of goods and services that are similar to the benefits provided by physical capital, such as machinery and infrastructure. Examples of ecosystem services that natural capital provides include carbon sequestration, water purification, soil fertility, and biodiversity conservation.
Natural capital is important because it provides the basis for human well-being and economic development. However, the overexploitation of natural resources and ecosystems can lead to negative environmental impacts and the depletion of natural capital. This can have long-term negative consequences for human well-being and the economy.
Therefore, managing and preserving natural capital is crucial for sustainable development and economic growth. This can be achieved through policies and practices that promote sustainable use of natural resources, conservation of ecosystems, and the development of new technologies that can reduce environmental impacts and promote resource efficiency.
The ESG space is changing day by day, creating more uncertainty for decision makers
