Head of Nature Investing David Sternlicht breaks down what we stand to gain by valuing nature as an asset class.
Head of Nature Investing David Sternlicht breaks down what we stand to gain by valuing nature as an asset class.
by David Sternlicht
In our most recent installment of our Valuing Nature Series, Head of Nature Investing David Sternlicht broke down what humanity stands to lose should we not invest in nature. This week, we look at the flip side of the coin by examining what could be gained if we make the shift to valuing nature as an asset class.
To start, nature is in crisis. A 2022 World Wildlife Fund report found an average decline of 69% across tens of thousands of wildlife populations since 1970. That being said, investors can make an enormous impact on this issue. Currently, annual funding for biodiversity and nature protection is $166 billion globally, with the lion’s share (76%) stemming from government funding. But the financial industry is extremely well funded – the size of the professionally managed assets market is $100 trillion. That means that even 1% of this market could bridge the entire nature financing gap. And investors can not only mobilize a larger pool of funding but also implement it more quickly, both locally and globally.
Here are some main takeaways from this episode:
Urgent Need for Investment: There is a pressing need for investment in nature conservation. A 2022 World Wildlife Fund report revealing a staggering 69% average decline across tens of thousands of wildlife populations since 1970.
Opportunity for Investors: This is a solution investors can scale by supporting projects and businesses that regenerate ecosystems and protect biodiversity while delivering financial returns.
Opportunity for Advisors: Educating clients on these investment opportunities can help them understand how nature is impacted by their portfolios, hopefully leading to an influx of private capital that scales consistently and rapidly.
What’s a Rich Text element?
The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.
Static and dynamic content editing
A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!
How to customize formatting for each rich text
Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.
MS-543129
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. Information contained herein was carefully compiled from third-party sources that Ethic Inc. believes to be reliable, but Ethic Inc. does not have control over any third-party content and cannot guarantee the accuracy of that information. Hyperlinks to this third-party informational content and websites are provided solely for reader convenience. By clicking hyperlinks to third-party content, you will be leaving the Ethic Inc. controlled environment.
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.