Developed for IAPB by the Landbanking Group, this Return on Investment (ROI) Methodology provides a practical, open-source framework for businesses to understand the financial value of investing in nature. It demonstrates how changes in nature affect business performance, from operating costs, cash flow and long-term company value. By modelling outcomes with and without investment in nature, the methodology helps companies quantify the financial returns from nature restoration and whether purchasing nature credits offers a more cost-effective solution than funding and managing interventions themselves. It is designed for businesses that depend on nature across their supply chains or at their own sites, as well as the investors, lenders and insurers working to transition their loan books and portfolios to become nature positive.
By translating nature outcomes into measurable financial value, this methodology marks an important step towards making investment in nature a mainstream business decision. Its worked examples across five sectors: agriculture, forestry, data centres, hydropower and nuclear energy demonstrate how investing in nature can protect operations, reduce costs and create long-term value.
In one example, a chocolate manufacturer invests USD 362 million in nature credits to restore 78,000 hectares of cocoa-growing land in Côte d’Ivoire, generating an estimated USD 2.5 billion increase in company value. The methodology is freely available and open-source, enabling companies to apply the approach to their own business model and financial data. By providing a common framework for assessing the business case for nature credits, it helps move nature investment beyond voluntary sustainability commitments and towards a measurable, financially grounded strategy for managing risk, building resilience and creating value for business and nature alike.