Biodiversity is increasingly recognised as relevant to investors, not only because economic activities affect nature, but also because many business models depend on it. When ecosystems degrade, the services they provide – such as raw materials, stable soils, or climate regulation – can no longer be taken for granted, creating operational and financial risks.
The concept of dependency is well established in climate finance: physical climate risks, transition risks, and exposure to climate systems are widely discussed and increasingly measured. By contrast, biodiversity dependency is a relatively new and emerging field. Although methodologies are evolving, there is growing recognition – reflected in initiatives like the Taskforce on Nature-related Financial Disclosures (TNFD) – that understanding how investments rely on nature is essential for long-term resilience.
At VP Capital, biodiversity is one of the three pillars of our impact-first strategy, alongside climate and social equality. To deepen our understanding of the nature-related risks in our portfolio, we conducted a biodiversity dependency assessment, focusing on how our investments depend on ecosystem services, both directly and through their value chains.
