Natural Capital Index

Natural Capital Index

Measuring environmental health and resource sustainability

Natural Capital is the stock of natural resources and ecosystem services that support economic activity and human well-being. It includes forests, water resources, biodiversity, clean air, and fertile soil. The health and availability of natural capital directly impacts a country's long-term competitiveness and sustainability.

The Natural Capital Index measures how well countries maintain and protect their environmental resources across key categories including biodiversity, forest resources, water resources, air quality, and climate-related factors.

Biodiversity

Water

Resources

Soil & Fertility

Why Natural Capital Matters

Environmental resources drive economic resilience and long-term value creation

For Investors

  • Reduced exposure to climate-related financial risks
  • Access to growing sustainable and green markets
  • Lower regulatory and compliance costs in environmentally stable regions
  • Protection against resource scarcity and price volatility
  • Enhanced portfolio resilience through environmental stability

For Businesses

  • Reliable access to clean water and natural resources
  • Reduced operational disruptions from environmental degradation
  • Enhanced brand reputation through sustainable operations
  • Lower costs from pollution control and environmental remediation
  • Competitive advantage in ESG-conscious markets

Bottom Line: Countries with strong natural capital provide stable, sustainable environments that reduce environmental risks and create long-term value for investors and businesses.

Natural Capital Indicators

Key clusters to measure environmental richness and health

Water

Availability of natural water resources, water usage and water efficiency, water stress, water pollution and the ability to generate freshwater from non-freshwater resources.

Biodiversity

The natural occurrence and abundance of biodiversity and biomass, as well as the level of intactness and natural degradation.

Food security

Calculated based on the availability of arable land, combined with water, fertility and harvest indicators.

Natural resource availability

Calculated based on the availability of natural organic, mineral and physical resources

Climate change risks

Evaluation of the exposure to short- and long term climate change risks

Soil

Evaluation of the agricultural sector based on soil and fertility indicators as well as expected impacts of climate change on biodiversity and fertility

The State of the World

A global snapshot of natural capital performance and trends

Global Scores

Global Trends

Key Observations

1

70% of countries show negative environmental trends, indicating widespread natural capital degradation

2

Gabon leads globally, followed by Central African Republic and Latvia, demonstrating strong forest conservation

3

Small island nations face severe challenges from climate change and limited natural resources

4

Major economies show varied performance: USA ranks 58th, China 148th, India 162nd

5

Northern Europe maintains strong natural capital through effective environmental policies

6

Rapid industrialization and population growth drive environmental degradation in developing nations

Natural Capital Rankings

Explore how countries compare across natural capital indicators

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Explore All Six Capital Dimensions

Discover how Natural Capital connects with Economic, Social, Intellectual, and Governance Capital

View All Dimensions