Why natural capital now?
%25202.png)
Why natural capital now?
Nuveen Natural Capital, January 2023
This white paper, authored by Gwen Busby, PhD, Head of Research and Strategy, and Skye Macpherson, CAIA, Head of Portfolio Management at Nuveen Natural Capital argues that current market instability and the increasingly pressing need to move towards a low-carbon economy requires investment portfolios to reach beyond traditional asset classes.
The COVID-19 pandemic and the conflict in Ukraine have severely disrupted global supply chains, thus contributing to market volatility, increased inflation, and aggressive monetary policies. These have in turn affected both public equity and fixed income asset classes, which have fallen by 15% and 10% year-on-year, respectively. In contrast, timberland and farmland indexes have increased by 12% and 10% respectively, emphasising the importance of diversification to maintain investment value.
Investing in natural capital not only provides portfolio-level benefits but also contributes towards global sustainability goals.
