Natural capital directly drives business profitability.

Natural capital directly drives business profitability. New Zealand research analyzing over 117,000 firms from 2009 to 2022 reveals a measurable economic relationship: a one percent increase in natural capital correlates with approximately 0.13 percent higher sales and 0.15 percent higher profits on average. Companies operating in regions with healthier ecosystems demonstrate superior financial performance across multiple biodiversity measures including river health, drought risk, and invasive species management. Environmental policies targeting ecosystem restoration, such as predator control programs and freshwater regulations, strengthened this productivity relationship. The findings suggest nature functions as a genuine economic asset on corporate balance sheets, challenging traditional accounting practices that ignore ecological contributions to business operations.