What is the capital of nature?

What is the capital of nature?

Environmental capital

Forests, rivers, soils and minerals, among other natural assets, are the basis of the wealth of the countries of Latin America and the Caribbean, as they generate ecosystem services with numerous environmental, economic and social benefits.

Estimates on the main components of the total wealth of Central American countries highlight that natural assets are strategic for the region. Why does nature generate wealth and well-being? Because a good part of the goods and services we produce and consume depend on nature. Strong sustainability” depends on development policies that do not endanger natural capital in order to favor the accumulation of total wealth as a whole.

Implementing an environmental policy in each country -rigorous, effective, transparent, with control mechanisms but also with efficient instruments for action, and supported by the use of economic instruments that promote the sustainable use of natural resources- requires institutional strengthening.

Natural Capital

Those that operate with Investment Subject Assets whose nature corresponds to shares, debentures, debt securities, money deposits, documents representing a debt owed by a third party and other securities, securities or documents authorized by the CNBV through general provisions.

They are those that operate predominantly with Investment Subject Assets whose nature corresponds to shares or social parts, obligations and bonds in charge of Companies Promoted by the investment fund itself.

Non-renewable natural capital

Companies are in charge of producing the goods that society consumes, for example, the clothes you wear, the food you buy, the transport you travel in, etc… One of their objectives is to “maximize their benefits or profits “1, producing the greatest amount of goods and services at a low cost, in order to obtain greater profits. To achieve this, it will be necessary to combine production factors, i.e. the elements that the company has to produce its products, and these are2:

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Labor: refers to the time and effort that people dedicate to produce goods and services. In this category we find people who work in the field, in factories, offices, stores, etc…

Entrepreneurial skills: refers to those who make decisions, bring new ideas and organize the three factors (land, labor and capital) how to produce by organizing the three factors: land, labor and capital. “The entrepreneur will have to look for ways to produce a good that involve a lower cost, i.e., that involve the least possible use of resources to meet the needs of consumers “3.

Natural capital economy

The Natural Capital Coalition defines natural capital as “the inventory of renewable and non-renewable natural resources that, when combined, provide benefits to people” and not only offers ecosystem services that are essential for life, such as pollination, climate regulation, water and air filtration, food production and erosion control, among others. In addition, the exploitation of natural capital provides goods and services that make economic and social progress possible. Thus, natural capital can be seen not only from the point of view of ecology and economics, but also from the social and cultural sphere.

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