Nature-related financial risks are no longer a side concern—they have become central to global investment strategies. Financial institutions are now recognizing that environmental stability is directly tied to economic resilience, and one of the clearest signals of this shift comes from Norway’s Sovereign Wealth Fund (GPFG), the world’s largest sovereign wealth fund, managing $1.6 trillion in assets.

In a landmark move, 96% of the fund’s portfolio is now being assessed for natural capital risk, reinforcing that nature is not just an ethical or sustainability concern—it is a financial reality that cannot be ignored.

This isn’t a minor strategy update; it represents a fundamental shift in global finance.

Nature Risks Are Financial Risks

The Norwegian Sovereign Wealth Fund’s decision highlights a growing consensus: nearly every financial asset is now exposed to nature-related risks. According to Norges Bank Investment Management’s 2024 Climate and Nature Disclosures Report, the fund has:

• Engaged with 519 companies on climate and nature risks, covering 54% of its financed emissions.
• Ensured that 74% of financed emissions are now tied to companies with science-based net-zero targets.

This shift aligns with the fund’s broader commitment to sustainable investing. In January 2025, despite experiencing a negative return of -10% on its unlisted renewable energy investments in 2024, the fund reaffirmed its commitment to renewable energy. In August 2024, it committed €900 million ($1.01 billion) to Copenhagen Infrastructure Partners’ fifth renewable energy fund, focusing on offshore and onshore wind, solar farms, and energy storage solutions.

This approach sends a clear signal: nature-based financial risks are not theoretical. They are actively shaping portfolio decisions at the highest levels of global finance.

The Connection Between Economic Stability and Nature

The connection between economic stability and nature is clearer than ever. Businesses and investors must place nature loss on the same level as climate change in their risk assessments. According to PwC’s analysis, 55% of global GDP—equivalent to about $58 trillion—is moderately or highly dependent on nature. This represents a sharp increase from the $44 trillion estimated in 2020, showing that nature risks are accelerating.

NBIM itself acknowledges that “climate change and nature degradation are interconnected challenges that materially impact financial performance.” These risks influence everything from corporate earnings and consumer demand to regulatory frameworks and global supply chains.

In response, major institutional investors are adjusting their strategies to bolster portfolio resilience by investing in nature-positive industries. The financial sector is moving beyond compliance-based sustainability initiatives toward full-scale economic adaptation.

A Fundamental Market Shift: Nature as a Core Financial Risk

NBIM’s actions signal a major shift in financial markets, where natural capital risks are becoming a key driver of asset valuation. When a $1.6 trillion fund integrates nature-related risks into its investment strategy, it highlights a growing recognition that the cost of ignoring environmental factors is rising.

The total value of intact forests and their ecosystem services is estimated between $50-$150 trillion—potentially twice the value of global stock markets. These ecosystems provide critical climate regulation, carbon sequestration, and biodiversity stability, all of which underpin long-term economic security.

This shift is not just about sustainability—it reflects a fundamental reassessment of financial risk. Investors, businesses, and policymakers must now recognize natural capital as a central economic factor, shaping investment flows and corporate strategies. Investing in nature is no longer a philanthropic effort; it is an economic necessity.

The Future of Investing in a Nature-Driven Economy

​​Other major funds, banks, and institutional investors will inevitably follow NBIM’s lead, integrating natural capital risk assessments into financial strategies. For businesses, the question is no longer if they will adapt, but how quickly.

At Impact One, we recognize this transformation as part of our Possible Futures initiative—a global effort dedicated to fostering nature-positive and symbiotic ways of living. This initiative integrates indigenous knowledge, ecological stewardship, and regenerative perspectives to reshape how societies interact with nature.