Natural Capital, Ecosystems and Biodiversity: Corporate and Financial Implications of the Green Transition

Over the past years, the global debate on sustainability has increasingly focused on climate change and carbon emissions, leading to substantial advances in climate-related regulation, reporting standards, and sustainable finance practices. In many contexts, climate protection has implicitly been equated with nature protection. However, while climate change represents a critical environmental challenge, nature protection is considerably broader and encompasses biodiversity, ecosystems, and the ecosystem services that underpin economic activity. Consequently, issues related to natural capital, ecosystems and biodiversity are becoming increasingly relevant for firms and financial markets, influencing them through multiple channels such as regulation, supply chain dependencies, risk exposure, valuation, capital allocation, etc. This seminar explores the role of natural capital, ecosystems and biodiversity in modern economic systems and corporate decision-making. Building on economic and ecological foundations, the course examines how the degradation of natural capital translates into risks and opportunities for firms, investors, and financial markets in the context of the green transformation. Students will gain a thorough understanding of key concepts such as natural capital, ecosystem services, and biodiversity, and learn how these are linked to economic growth, value creation and systemic risk. The seminar places particular emphasis on the implications for companies, including impacts on accounting and sustainability reporting, risk management, financing conditions, investment decisions, and global value chains. Combining theoretical insights with applied case studies, the seminar enables students to critically assess current measurement and valuation approaches, regulatory initiatives, and corporate strategies related to nature-related risks and opportunities. Participants will present selected academic papers or practical cases and prepare a research paper that applies the seminar’s concepts to a concrete corporate, financial, or policy context.

Learning Goals

• Understand and clearly distinguish the core concepts of natural capital, biodiversity, ecosystems, and
  ecosystem services, and explain their economic relevance.
• Analyze how nature-related risks and dependencies affect firms and financial markets, including impacts
  on corporate value creation, risk exposure, and long-term competitiveness.
• Identify and assess opportunities arising from the green transformation, such as innovation, new business
  models, and strategic advantages linked to the sustainable use of natural capital.
• Critically evaluate measurement, valuation, and disclosure approaches related to natural capital and
  biodiversity, including their methodological limitations and ethical implications.
• Evaluate how natural capital and biodiversity considerations influence the valuation of investments and
  funds, including implications for asset pricing, portfolio allocation, and risk-adjusted returns.
• Assess the implications of nature-related regulation and policy frameworks (e.g. sustainability reporting
  requirements, biodiversity strategies, financial regulation) for corporate behavior and investment decisions.
  Apply the seminar’s concepts to concrete corporate, financial, or policy contexts, and develop well-founded
  analytical arguments in written and oral form.