Nature loss is a global emergency, risking resource depletion and diminishing our capacity to combat climate change. The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services reports that one million of the world’s estimated eight million species of plants and animals are threatened with extinction.
The Natural Capital Initiative pioneers a strategy that merges conservation, digital and AI technologies, and financial incentives to restore ecosystems. AECOM was commissioned by the initiative’s proponent, Napital Group, to establish a pilot project in Bintan Island, Indonesia. Inspired by the successful Natural Capital Laboratory in Scotland, the project aims to localize a cutting-edge methodology for restoring forestland while harnessing the power of digital tools to monitor and communicate ecological progress through key natural capital data. Furthermore, the data will facilitate commercial partnerships to address the global nature emergency.
Measuring natural capital
Today, “nature positive” resonates as strongly as the call for “net zero”. However, measuring nature positivity is still in its infancy compared to the well-established metrics and market incentives for net-zero carbon emissions. The Natural Capital Initiative seeks to elevate the importance of nature positivity, galvanizing corporations and businesses to address the biodiversity crisis. Their pilot project covers a 100-hectare area on Bintan Island, where degraded hillside will be restored into a high-performance forest habitat.
Natural capital is defined by a set of metrics relating to air, water, soil, carbon and biodiversity. Baseline data will be collected to set future targets and compare against data gathered after restoration activities to determine the project’s natural capital gains. Although established methods exist for monitoring air, water, soil, and carbon, biodiversity remains a relatively new area. To address this, we will utilize a combination of drones, camera traps, audio monitors, and eDNA. We will also employ our innovative Singapore Biodiversity Accounting Metric, given the site’s proximity to Singapore. This metric condenses complex biodiversity datasets into a single numerical unit.
Communicating restoration progress
The gathered data will be displayed in a natural capital digital twin so that stakeholders are able to track the progress of the site. The initiative’s goal is to present environmental data in a visually friendly manner that engages even non-scientists to generate support, receive feedback, and educate the public. The availability of this data also facilitates adaptive management of the site to maximize performance. Data transparency will be key as the project owner explores commercializing their ESG solutions through collaboration with financial institutions, the FinTech sector, and global corporations, to counter the climate and nature emergency in a financially sustainable manner.
Natural capital matters to the commercial sector
Economic activity is as inextricably linked to nature as it is to climate. Biodiversity is gaining traction in private sector agendas as more reporting standards and stock exchanges require disclosures of nature-related risks in addition to climate-related ones. Soon, delivering positive gains for nature will become a cornerstone of sustainable business practices. A holistic portfolio of natural capital, including biodiversity and carbon, could unlock vital financial incentives through ESG ratings, green finance opportunities, and preparation for future credit systems.
In the forward march of the Bintan Island pilot project, AECOM and Napital Group are not only opening doors for the commercial sector’s involvement in ecosystem restoration but are also pioneering a movement where nature’s self-healing capabilities are harnessed and amplified. By creating a collaborative platform, we are setting in motion a series of actions that not only allow nature to heal itself but also expedite this natural process.