Episode 1 - Introduction to Rebalance Earth - Robert Gardner
Nature as the Next Big Investment: How Rebalance Earth is Transforming Finance
In today’s world, the need to find innovative solutions to climate and environmental challenges is more pressing than ever. We’re seeing increased risks from flooding, drought, biodiversity loss, and declining water quality—all of which threaten businesses, cities, and communities. At the same time, companies and investors are starting to realize that the old ways of doing business are not sustainable in a world facing such profound environmental threats.
At Rebalance Earth, we believe the solution lies in something that’s long been overlooked: nature itself. Our mission is to redefine nature as an asset class—one that not only provides environmental benefits but also offers financial returns. As the co-founders of Rebalance Earth, Rob Gardner and I have seen how this approach can change the way businesses and investors think about nature. In this blog, we’ll explore why investing in nature is the next big opportunity and how Rebalance Earth is leading the way.
The Problem: Why Businesses Should Care About Nature
Climate and nature-related risks are not future concerns—they are affecting businesses right now. In the UK alone, 185,000 businesses are at risk from flooding, and this number will only rise as climate change accelerates. Despite the government spending £800 million annually on flood defences, the country still experiences £1.4 billion in flood-related damages each year. Each flood event costs an average business £82,000 and with 1 in 6 UK households at risk, some homes are becoming uninsurable—and therefore unsellable.
This is just one aspect of a much larger environmental challenge that also includes droughts, poor water quality, and biodiversity loss. What’s often overlooked is that these environmental issues directly impact businesses' bottom lines. Flooding can disrupt operations, damage infrastructure, and increase insurance premiums. Drought and poor water quality can affect industries that rely on clean water, such as manufacturing and agriculture. As Rob mentioned on the podcast, “Water is probably the most mispriced asset,” and it’s critical that businesses begin to invest in solutions that address these water-related risks.
Even ecosystems, which support biodiversity, are crucial to maintaining the natural balance that industries like food production depend on. It’s time to recognize that healthy ecosystems are essential for the stability of our businesses and communities. This is where Rebalance Earth’s approach comes into play.
The Opportunity: Nature as Business-Critical Infrastructure
Nature is often thought of as something separate from business—something that’s important, but peripheral. At Rebalance Earth, we’re challenging that notion. We see nature as a form of infrastructure, just as vital as roads, bridges, and energy grids. The key difference? Nature’s infrastructure provides services that we’ve been taking for granted—flood and drought protection, water purification, carbon sequestration, and biodiversity enhancement—all for free. But without investment, these services are at risk of disappearing, and the cost of replacing them with artificial solutions would be astronomical.
This is why we’re championing the concept of Nature as a Service (NaaS). Just as businesses pay for utilities, they should be investing in the restoration and maintenance of natural ecosystems to ensure they continue to provide essential services. For instance, restoring wetlands and rewiggling rivers can significantly reduce flood risks while enhancing biodiversity and storing carbon. Similarly, improving soil health through regenerative farming practices can mitigate the impacts of drought and poor water quality.
By framing nature as critical infrastructure, we’re creating a new way for businesses and investors to see the financial value in ecosystem restoration. And as Rob Gardner highlighted, this isn’t just an environmental imperative—it’s a sound financial strategy. "We need to reconceptualize nature as an asset class," Rob said, "because if we don’t start valuing it now, the costs will only increase."
The 2% Solution: Unlocking Capital for Nature Restoration
The financing gap for biodiversity restoration is staggering. Globally, it’s estimated at around $700 billion annually, and the UK’s share of this is £50-£100 billion over the next 25 years. This gap can’t be filled by philanthropy alone—it requires large-scale, institutional investment. Fortunately, there’s a clear path forward, and it involves leveraging the vast capital already managed by pension funds.
UK pension funds and wealth managers control over £5 trillion in assets, set to rise to £9 trillion by 2030. If just 2% of these funds were allocated towards nature restoration, we could close the nature financing gap. This 2%—or around £100 billion—would be enough to fund large-scale restoration projects across the UK, addressing everything from flood risks to biodiversity loss.
Investing in nature isn’t just an ethical decision—it’s a smart financial strategy. A report from PwC predicts that businesses could face £28 billion in annual economic losses from climate change by 2050 if no action is taken. By investing in nature restoration today, businesses can reduce their exposure to these risks and strengthen their resilience.
At Rebalance Earth, we’re working to mobilize this capital by developing bespoke Nature as a Service contracts that allow businesses to pay for the benefits provided by restored landscapes. These contracts offer a win-win scenario: businesses get long-term resilience and reduced operational risks, while investors, particularly pension funds, receive stable, risk-adjusted returns. As Rob Gardner puts it: "Pension funds are used to investing in infrastructure projects like motorways and wind farms. Nature restoration should be no different."
This is the essence of our 2% for Nature campaign—a call to action for the investment community to allocate a small but significant portion of their capital to nature restoration. By doing so, we can unlock the financial power needed to protect and restore the ecosystems that support our economy.
The Solution: Rebalance Earth’s Nature-Based Investments
Rebalance Earth is pioneering a new approach to financing ecosystem restoration by focusing on nature as a business-critical asset. Through our DARWIN Fund (Delivering Adaptation, Resilience, and Water Infrastructure through Nature), we’re creating investment opportunities that provide both financial returns and environmental benefits. Our fund is backed by patient, long-term capital from pension funds, family offices, and wealth managers who understand the importance of investing in nature.
The DARWIN Fund allows businesses to pay for the services that nature provides—whether it’s reducing flood risks, improving water quality, or enhancing biodiversity. This not only helps businesses mitigate climate risks, but also provides them with a direct financial incentive to invest in nature. By creating tailored NaaS contracts, we ensure that businesses are paying for the specific benefits they receive, making nature restoration a financially viable solution.
As Rob Gardner discussed in the podcast, this approach is about more than just saving money. It’s about rethinking how we allocate capital to ensure that we’re investing in a future that benefits both people and the planet. “We can’t rely on philanthropy alone to fund the restoration of nature,” Rob said. “We need to make it an investable asset class, so that businesses and investors alike see the financial value in protecting the ecosystems that sustain us.”
A Future Built on Resilience and Restoration
At Rebalance Earth, our vision is simple: to create a world where nature is recognized as an essential part of our economy. This isn’t just about mitigating risks—it’s about creating long-term resilience for businesses, cities, and communities. In the next 10 to 20 years, we hope to see nature restoration become a mainstream investment opportunity, with businesses and investors alike recognizing the financial value of ecosystems.
Success, for us, looks like a world where cities are more resilient to climate shocks, where biodiversity thrives, and where nature is seen as a critical part of our infrastructure. It’s about building a future where nature is not only protected, but valued as an asset that supports economic growth and stability.
By working with forward-thinking investors, businesses, and policymakers, we’re confident that this future is within reach. As Rob Gardner says, “Together, we can rewiggle capitalism and build a world where nature is not only conserved, but restored to its full potential.”
Join Us in Investing in Nature
If you’re passionate about creating a sustainable future, there are many ways to get involved. At Rebalance Earth, we’re inviting businesses, investors, and individuals to join us in transforming the way we value and invest in nature. Whether you’re a corporate leader looking to mitigate risks, a pension fund manager seeking long-term returns, or simply someone who cares about the environment, there’s a role for you in this movement.
As Rob Gardner mentioned in our podcast, “We have the tools, the knowledge, and the financial power to solve the environmental crises we face. The opportunity is there—we just need to seize it.”
Let’s work together to build a world where nature is valued not just for its beauty, but for its essential role in supporting a resilient and prosperous future.