3 Trends Our Nature Investments Team is Following
Thursday, January 18, 2024
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January 2024
3 Trends Our Nature Investments Team is Following
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Nature-capital financing is on the rise- our head of nature investments, David Sternlicht, lends his insights into staying ahead of the curve.

by David Sternlicht

Natural-capital investing is an exciting new landscape with a lot to come on the horizon. 

However, like all frontiers, there can be many challenges when it comes to navigation. As a primer, there is a growing movement to mobilize capital to solve the nature crisis. A recent report estimated a global “nature financing gap” of about $711 billion annually by 2030. That is the amount of investment needed to halt and reverse biodiversity loss. Now, the current annual funding for biodiversity and nature protection is $166 billion globally, with the lion’s share (76 percent) stemming from government funding. The corporate sector, accounting for only $29 billion of that annual flow, is lagging. While that might sound dire, it does mean that there is an enormous opportunity for the $100 trillion professionally managed assets market to bridge the gap. As this opportunity gains momentum, we’ve found that many investors are interested in exploring how nature capital investing could potentially deliver returns AND close a financing gap that is vital to our future. 

Curious about this emerging asset class? Ethic’s head of nature investing, David Sternlicht, offers some insight into the trends he and his team are keeping an eye on. 

  • We are seeing the emergence of corporate disclosure requirements on the nature indicators that matter most. The Task Force on Nature-related Financial Disclosures released a risk management and disclosure framework. This is crucial for standardizing the methods by which companies identify, assess, manage, and disclose nature-related aspects, providing transparency for investors interested in setting targets for halting nature loss.
  • The Nature Positive Initiative is seeking to bring greater alignment on nature-related language across public and private sectors. By defining and developing concrete impact goals, this initiative fosters clarity crucial to helping various entities align their actions in protecting and restoring nature.
  • New technologies are transforming nature monitoring and reporting and offer a fuller range of tools for measuring impact. These recent advancements could enable more cost-effective data collection, enhance transparency in designing and monitoring nature-positive projects and offer investors more confidence that they’re investing in projects with integrity. 

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Sources and footnotes

Ethic Inc. is a Registered Investment Adviser located in New York, NY. Registration of an investment adviser does not imply any level of skill or training. Information pertaining to Ethic Inc’s registration or to obtain a copy of Ethic Inc.’s current written disclosure statement discussing Ethic Inc.’s business operations, services and fees is available on the SEC’s Investment Adviser Public Information website – www.adviserinfo.sec.gov or from Ethic Inc. upon written request at support@ethicinvesting.com. Information provided herein is for informational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Any subsequent, direct communication by Ethic Inc. with a prospective client shall be conducted by a representative of Ethic Inc. that is either registered or qualifies for an exemption or exclusion from registration in the state where a prospective client resides. Information contained herein may be carefully compiled from third-party sources that Ethic Inc. believes to be reliable, but Ethic Inc. cannot guarantee the accuracy of any third-party information.

Ethic Inc. does not render any legal, accounting, or tax advice. Ethic Inc. recommends all investors seek the services of competent professionals in any of the aforementioned areas. Ethic Inc. cannot provide any assurances that any investment strategies, simulations, etc. will perform as described in our materials. ALL INVESTMENTS INVOLVE RISK, ARE NOT GUARANTEED, AND MAY LOSE VALUE. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY.


David Sternlicht's entire career has been dedicated to addressing social and environmental challenges with investment capital. He has published research reports, launched and managed private investment funds, and advised startups and fund managers in the impact space. He has assembled a team of industry leaders in finance, science, technology, and storytelling to build out nature as an asset class for Ethic.

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