Natural Capital encompasses the world's stock of natural resources, including geology, soils, air, water, and all living organisms.
These resources provide critical ecosystem services, which are essential for human life and well-being. Protecting, restoring and enhancing these assets is not only essential for a sustainable future but also presents significant investment opportunities.
With PwC estimating that 50% of global GDP—equivalent to approximately $58 trillion—is moderately or highly dependent on nature, the World Wildlife Fund's (WWF) Global Living Planet Index reporting a two-thirds decline in species abundance since 1970, and the Natural History Museum revealing that much of the planet scores below 30% on its Biodiversity Intactness Index (indicating ecosystems at risk of collapse), it is clear that enormous capital investments and innovative solutions are required.
Whilst failing to make the management and use of natural capital by mankind more sustainable poses significant existential risks, investing in the sector to address the known challenges also holds immense financial growth potential, alongside positive impact.
Our Key Focus Areas
Sustainable Forestry
We invest in forestry and afforestation to address the global shortage of sustainable timber, expected to triple by 2050. With rising demand from anti-deforestation laws, sustainable building, and disclosure legislation, our investments are set to appreciate significantly in the coming years.
Carbon Credits
As corporations face pressure to meet net zero targets, demand for high-quality carbon credits is expected to soar. Our strategy involves investing in projects that generate high-integrity carbon credits, which are forecasted to see substantial price increases due to anticipated shortages by the 2030s.
Biodiversity Credits
Biodiversity credits are a growing market driven by new regulations and financial disclosures. We invest in early-stage biodiversity credits, offering a unique chance to finance and benefit from positive outcomes for nature.
Regenerative Agriculture
Investments that support the transition to regenerative farming practices deliver monetisable benefits/services to society such as better quality food, sustainable crop yields, increased biodiversity and water management benefits (e.g. protection from flooding).
Our Existing Strategy
Our commitment to sustainability
We believe that true sustainability cannot be achieved without considering the impact of investments on natural capital. Our strategy is designed to align positive financial returns with the preservation of natural ecosystems. By monetising ecosystem services such as sustainable timber, carbon credits, biodiversity credits and sustainable food, we create value for our investors while contributing to a healthier planet.
Investing in natural capital: A sustainable approach
Our natural capital strategy is designed to offer investors attractive risk-adjusted returns while making a meaningful contribution to a net zero, nature-positive, and equitable future. We focus on assets that align financial outcomes with the preservation and enhancement of natural resources, ensuring long-term sustainability and profitability.
Leader in afforestation
As the coordinator of the largest private-sector afforestation effort in Scotland, Wales, and England for several decades, Foresight's afforestation portfolio, once fully planted, will be equivalent to 32% of the total area the UK planted with trees in the year to March 2024. This makes our woodland creation programme the largest private-sector planting campaign carried out over a similar timespan by a single organisation in a generation.
Differentiated approach
Foresight stands out as a progressive industry leader in natural capital investments, offering a differentiated approach to land-based management and investment. With a strategy that has already invested in over 80 natural capital assets, Foresight leverages its proprietary bilateral deal origination capability and proven investment process to deliver at scale. Our focus on proactive development as the driver of returns is exemplified by our nationally significant natural capital development programme and strong performance track record.
Industry expert
Foresight is also at the forefront of industry initiatives and thought leadership, being the first to receive the London Stock Exchange’s Voluntary Carbon Market (VCM) designation and co-authoring a UK government carbon credit policy paper with King’s College London. Investing with Foresight means partnering with a leader committed to sustainable and impactful natural capital investments.
The Market Opportunity
A Growing Demand for Natural Capital Assets
The market for natural capital assets is expanding rapidly in response to the global climate and biodiversity emergencies. Our strategy positions investors to capture growth across monetisable ecosystem service markets as they develop and emerge.
Why Invest with Us?
Strategic Alignment with Global Goals
Our natural capital strategy is aligned with international efforts to combat climate change, biodiversity loss and unsustainably intensive agriculture. We focus on high-impact investments that support the goals of the Paris Agreement and the Kunming-Montreal Global Biodiversity Framework, both of which emphasise the importance of nature in solving global environmental challenges.
Join Us in Investing for a Sustainable Future
Invest in natural capital with us and become part of a strategy that offers both financial returns and positive environmental impact. Together, we can contribute to a net zero, nature-positive, and equitable future.
Contact Us
For more information on our natural capital strategy and how to invest, please contact our team.