Capitals Framework

Natural capital

Natural capital comprises the world’s stock of natural assets: soil, air, water and all living things. For each company, we analyse three key aspects of natural capital: carbon, biodiversity and water.

Aug 3, 2022

9 minutes

Stephanie Niven
Sam Anthony
Natural capital comprises the world’s stock of natural assets: soil, air, water and all living things. For each company, we analyse three key aspects of natural capital: carbon, biodiversity and water.
Stephanie Niven
Portfolio Manager
Sam Anthony
Analyst

The fast view

  • Companies are increasingly being held to account for their impacts on society and the environment, influencing their growth and profitability.
  • Investors need new tools to evaluate these impacts, or ‘externalities’, and hence identify opportunities and risks that the market may have mispriced.
  • The Sustainable Equity team has developed a Capitals Framework to assess a wide range of externalities. The framework is an intrinsic component of the investment processes of all the team’s sustainable strategies.
  • We assess different categories of externalities. This paper introduces the framework we use to do this and then focuses on how we analyse natural capital externalities.

 

Download PDF

 

Sustainable investing - latest insights

Important Information

This communication is provided for general information only should not be construed as advice.

All the information in is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessary reflect those of Ninety One.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon.

All rights reserved. Issued by Ninety One.