Return on investment: how is it to be defined?

Understanding return on investment (ROI) is not only about financial gains. While investors prioritize cash flows, they also perceive ROI in alternative ways:

• Environmental & Social Benefits: Think cleaner water, more wildlife, and better incomes for farmers. Plus, less time and money spent on manual labor and avoiding risks.

• Cost Savings: NbS help fight climate change. Initial costs might be high, but they save money later, like reducing damage to buildings or lost work days.

The challenge is that the ROI of Nature-Based Solutions can take 5 to 10 years to materialize. Since they often involve public projects, they require significant upfront investments.