Whether managing pensions, insuring assets, or investing in global markets, Universal Asset Owners (UO's) such as Sovereign Wealth Funds, Pension Funds, and Large Asset Managers like BlackRock are deeply intertwined with nature's vast resources. In fact they are 100% dependent on nature just like society and the economy BUT have the most aggregate financial risk.
Like the best-engineered systems, UO's depend on robust, healthy ecosystems to sustain their long-term investment strategies and portfolio company health. However, the fragility of these natural systems poses significant risks that can reverberate across their diversified portfolios. The evidence of this is being seen everyday between wildfires, flooding, heatwaves, supply chain disruptions and declines in stakeholder health and well-being.
What specific risks and dependencies do Universal Owner's face?
🏞 Water Abundance & Clean Water: Crucial for real estate, agriculture, and manufacturing sectors. Water risk affects asset values and operational viability.
💨 Clean Air: is essential for ensuring the health of investments tied to physical assets and worker safety in operational sectors.
🌱 Healthy Soils: Essential for agricultural investments and raw materials, impacting food and consumer goods.
🌤 Climate Stability: A stable climate underpins predictable returns across all asset classes, from agriculture to real estate to energy.
🌾 Pollination and Food Production: Directly affects commodity investments and food supply chains, influencing market stability and pricing.
🌿 Habitat & Biodiversity: Ensures ecosystem resilience and sustainability, supporting long-term asset growth and stability.
How can these risks be lowered?
Smart UO's see Nature is an investment and not a cost. BASIN Natural Capital turns nature and climate risk into an investable asset.
Certificates of Ensurance, by BASIN, are specifically designed for UO's to convert nature related risks into opportunities, directly linking financial health with ecosystem vitality. By purchasing these certificates, UO's are not just investing in financial assets but are actively funding the protection and restoration of 14 critical ecosystems and their associated 14 essential ecosystem services and the underlying real assets.
BASIN turns climate uncertainty into stable, resilient returns for UO portfolios. This strategic investment helps safeguard the natural systems that support global financial markets, ensuring the RealValue of Natural Capital is recognized and enhanced in perpetuity. Ensurance is built on real assets, natural capital, and scientific fundamentals to ensure trust and rigor demanded by UO's.
One-click investment into Certificates of Ensurance are available today on Coinbase and Arbitrum. We also accept check or wire and can send Certificates to you via PDF or FedEx.
The underlying natural assets can be seen in the BASIN Ensurance Binder.
