Introduction

The case for nature investing

¹ World Economic Forum (2020). The Future of Nature and Business, New Nature Economic Report II ² World Economic Forum (2026). 50 Investable Opportunities for a New Nature Economy

^{Climate Policy Initiative. 2025. Global Landscape of Climate Finance 2025}^{https://www.climatepolicyinitiative.org/publication/global-landscape-ofclimate-finance-2025/}

We believe that natural capital risks and opportunities - and the actions needed to halt biodiversity loss and restore nature - are increasingly central to long-term value creation and economic resilience for investors, companies and policymakers.

The World Economic Forum estimates that the transition to a nature positive economy could unlock over $10.1 trillion in business value by 2030¹. This opportunity is expected to be driven by structural shifts across land use, oceans, infrastructure and energy.

More recently, 2026 analysis highlights a strong pipeline of investible opportunities is emerging across 12 key sectors, underpinned by more than 50 investment ready, revenue generating solutions identified across 13 industries, including regenerative agriculture, water efficiency, circular materials, nature-tech and sustainable industrial processes².

"Nature is the foundation of human health, prosperity and security. Yet humanity is waging a war on nature – and nature is striking back.”

António Guterres, UN Secretary-General
COP15 Biodiversity Process

This graph shows the current annual biodiversity finance flows vs biodiversity conservation funding needs by 2030. The current biodiversity financial flows amounts to $208 billion per year, with the biodiversity financing gap between current and future needs widened to $942 billion.

Source: Adapted from Bloomberg NEF (2024) Biodiversity Finance Factbook

³Bloomberg NEF (2024) Biodiversity Finance Factbook ⁴World Economic Forum (2026). 50 Investable Opportunities for a New Nature Economy⁵World Economic Forum (2026) Global Risks Report 2026

This transition is further reinforced by the $942 billion annual biodiversity finance gap, which highlights substantial unmet demand for nature positive solutions³.

At the same time, global capital flows remain misaligned, with around $7.3 trillion still directed each year toward nature negative activities versus roughly $220 billion invested in nature based solutions, reflecting a persistent market inefficiency⁴.

Biodiversity loss and ecosystem collapse are also recognised as the second most severe global risk over the next decade⁵. With more than half of global GDP dependent on nature and companies already facing impacts from water scarcity, soil degradation, pollution and tightening regulation, nature‑related risks are now material to business performance and resilience.

Companies that understand their nature‑related risks and opportunities are better positioned to invest in solutions that harness nature to strengthen resilience and long‑term adaptability.

Biodiversity Finance Gap

The Aviva Investors Natural Capital Global Equity (NCGE) Strategy

A high conviction, actively managed Strategy that aims to deliver long-term capital growth and to support the transition towards a nature positive economy by investing in companies that are either providing solutions that reduce human impacts on nature or are transitioning their business models towards a nature-positive economy.

Investment and sustainable objective

Long-term capital growth

+

Support the transition to a nature positive economy

Investing in and engaging with companies in two types of categories

Solutions

Products or services to reduce human impacts on nature

+

Operations

Leading in transitioning their business models and operations to a nature positive economy

"Halting and reversing biodiversity loss will require significant investment, which we believe will flow through to both private and public markets as policymakers are increasingly keen to address it but face a significant funding gap. This creates investment opportunities for our Strategy”

Jonathan Toub, Portfolio Manager of the Aviva Investors Natural Capital Global Equity Strategy

Our Strategy invests in four themes which aims to address the main drivers of nature loss:

Drivers of nature loss

Circular economy

Sustainable land

Sustainable oceans

The fight against climate change

For illustrative purposes only and should not be considered a recommendation to purchase or sell any security

Overconsumption

Destruction of natural habitats

Overfishing and water pollution

Climate change

Recycling and reuse technologies, sustainable packaging and waste treatment

Precision agriculture, sustainability monitoring and verification and green buildings

Water treatment, clean water, sanitation, sustainable mariculture & aquaculture, plastic reduction and biodegradable materials

Themes

Energy efficiency, renewables, green transport and animal feeds

The Strategy has 3 distinctive elements:

Desired outcomes

1.

Natural capital credentials alongside shareholder returns

2.

Additional focus on operational leaders

3.

Bespoke and structured engagement programme

Our approach

Aims to deliver profitable growth from the natural capital theme.

Deliver more resilient performance over the long term, uncover more alpha opportunities, and more effectively support the natural capital transition by combining a solutions approach with the focus on transition leaders.

Targets all portfolio holdings aiming to drive positive nature outcomes.