Industry Dependencies & Risks

At the core of BASIN’s work to make natural capital investable, the common and persistent question is “Who Pays and Why?” As society and the economy are 100% part of and dependent on Nature, the straightforward answer should be that “everybody” or “all of us” pay to protect, restore, and steward Nature. However, this delves into the concept of externalities and the ‘free rider’ problems, which are not easily addressed.

The Bottom-line

BASIN’s thesis is that nature-related dependencies, impacts, risks, and opportunities are quantitatively connected to the financial bottom-lines of economies, industries, businesses, organizations, and families. While the qualitative aspects of these relationships are indeed significant, we view them as outcomes rather than the driving forces.

Financial and Economic Dependency and Risk Mapping

The assessment of financial dependencies and risks related to ecosystem services within industries primarily relies on data from the ENCORE database. Three main frameworks (the ENCORE tool, S&P Nature Risk Profile, and the Swiss Re BES Index) utilize ENCORE data to examine sector and industry nature-related dependencies and risks. Additionally, the InVest tool is included for its utility in scenario, project, or site-specific analyses, despite its less industry-focused approach.

The need for more comprehensive data and studies in this area is recognized, with the anticipation that TNFD reporting using SASB Industry classification will provide a foundational base.

Leading Frameworks

These tools and frameworks represent the leading efforts in addressing the nature-related financial and economic complexities. (ENCORE, BES Index, and InVEST are also covered in the Ecosystem Services Classification Appendix.)


This tool is designed to help organizations, particularly in the financial sector, understand their natural capital risks and dependencies. It categorizes how business sectors and processes impact nature, focusing on lending, underwriting, and investments in high-risk industries. ENCORE introduces users to nature-related financial disclosure frameworks, including a special biodiversity module for agriculture and mining sectors. ENCORE uses the GICS industry classification.

Natural Capital Assets and Ecosystem Services Industry Dependencies

S&P Nature Risk Profile

Launched in collaboration with the UN Environment Programme, this methodology aids the financial sector in measuring and managing nature-related risks. It provides analytics on nature impacts and dependencies, aligning with the TNFD disclosure framework. The approach includes the Ecosystem Footprint metric, combining land impact, ecosystem degradation, and significance to evaluate a company's impact on biodiversity and ecosystem services. S&P uses the GICS industry classification.

Ecosystem Dependency Score

Swiss Re BES Index

The Biodiversity and Ecosystem Services Index evaluates the dependency of economic sectors on nature and assesses countries' exposure to biodiversity and ecosystem service decline. This index supports the reinsurance business case and measures nature's value, identifying sectors most reliant on natural capital. Swiss Re uses the NACE industry classification.

Sector Dependency


Developed by the Natural Capital Project, InVest is an open-source software suite for mapping and valuing crucial ecosystem services. It produces spatially-explicit models to support decision-making in resource management across terrestrial, freshwater, and marine ecosystems. The tool is geared towards a broad user base, including governments and corporations, facilitating the integration of natural capital value into decision-making processes.

Each framework via their own approach plays a vital role in mapping industry dependencies on ecosystem services and identifying the associated financial and economic risks.

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