Natural Capital

Natural capital refers to the stock of natural resources and ecosystems that sustain economic activity and human well-being. It includes assets such as forests, water, soil, biodiversity, oceans and the atmosphere, as well as the ecosystem services they provide: climate regulation, pollination, soil fertility and water purification.

From a business perspective, natural capital is a strategic factor. Organisations depend directly or indirectly on these resources to operate, produce and grow. When natural capital is degraded, operational, regulatory and financial risks increase.

How natural capital is measured

Two reference frameworks have made natural capital easier to assess and compare:

• The Natural Capital Protocol (Capitals Coalition) gives organisations a standardised process to identify, measure and value their impacts and dependencies on nature.
• The System of Environmental-Economic Accounting (SEEA), the United Nations statistical standard, lets countries account for natural capital alongside traditional economic measures such as GDP.

A practical example: a beverage or food company depends on healthy watersheds and pollinators. If those ecosystems decline, input costs and supply risk rise, which is exactly the kind of dependency these frameworks make visible.

Regulatory framework and related standards

Natural capital is gaining importance within corporate sustainability and reporting frameworks, particularly under the Corporate Sustainability Reporting Directive (CSRD) and the ESRS standards, which require companies to disclose impacts, risks and dependencies related to biodiversity, water and natural resources (notably ESRS E4 on biodiversity and ecosystems).

At the international level, the Taskforce on Nature-related Financial Disclosures (TNFD) provides guidance to identify and manage nature-related financial risks and dependencies.

Why is it relevant for companies?

Natural capital directly affects:

• Operational continuity (availability of water and raw materials).
• Environmental regulatory compliance.
• Exposure to physical and transition climate risks.
• Reputation and relationships with investors and stakeholders.

Integrating natural capital into corporate strategy involves measuring dependencies and impacts, setting reduction or restoration targets, and linking these indicators to ESG reporting.

Natural capital as a competitive advantage

Companies that proactively manage their relationship with nature not only reduce risks but also unlock opportunities: resource efficiency, circular innovation and access to green finance. Approaches such as nature-based solutions can protect and restore these assets while delivering climate and business benefits.

In a context of increasing regulatory requirements and investor pressure, natural capital shifts from being an externality to becoming a strategic management variable. At Manglai we help companies measure their environmental footprint and prepare their sustainability reporting. Discover how Manglai can help you.