Abstract:

Background & Aims: Biodiversity investment has gradually evolved from a conceptual design into a key driver of the global economy’s green transition against the ongoing global biodiversity loss. In response to the increasingly prominent biodiversity risks and the lack of a systematic investment theory framework, this paper aims to elucidate the underlying logic and operational system of biodiversity investment, thereby providing a theoretical foundation for the deep integration of natural capital with economic and social benefits. 

Results: The study systematically reviewed the impact pathways of biodiversity risks on corporate operations. Following risk identification, it analyzed the theoretical foundations and logic underpinning biodiversity investment, established an integrated ecological architecture, and discussed various operational models and their respective application settings. Based on an analysis of the origin of biodiversity risks, this paper further elucidated the transmission channels through which biodiversity risks impact corporate costs, supply chains, and compliance and reputational standing. Consequently, it established a foundational logic anchored in the quantification of natural value, along with an associated ecological architecture. 

Suggestions: This paper proposes three constructive pathways for biodiversity investment in China, grounded in an analysis of the practical challenges at hand. These challenges include ambiguous property rights arising from the multidimensional nature of biodiversity value, the dual failure of markets and governments that deters social capital, and limited corporate awareness that undermines the precision of assessment frameworks. The proposed pathways consist of institutionalizing a verification system, operationalizing additionality validation management, and establishing a sustained financing framework.

Key words: biodiversity investment, system architecture, operating models, natural capital, risk transmission