What are Life Pillars?

The term "Life Pillars" refers to the three domains of nature: land, ocean and atmosphere. Each of these represents a key ingredient for life on Earth and includes the ecosystem services they provide. Without these vital resources life would not be possible. 

When we think about Life Pillars, we make a distinction in how we approach water, and have created a Life Pillar called the ocean that encapsulates all water on earth.  This would include both freshwater and the ocean, since 97% of the world's freshwater is contained in the ocean.  

This approach diverges slightly from the "Nature's Four Realms" used by the Taskforce on Nature-Related Financial Disclosures (TNFD), which keeps the ocean and freshwater separate.  (The four categories TNFD use are land, ocean, freshwater and atmosphere¹.)

Definition: We regard nature as being comprised of three Life Pillars (land, ocean and atmosphere). They provide key ecosystem services and benefits that are crucial for human wellbeing and the prosperity of the global economy.  

Why are Life Pillars so vital?

Land, ocean and atmosphere are integral, yet often overlooked, components of the global economy. These Life Pillars provide ecosystem services that benefit humanity and businesses alike, such as climate regulation and fertile soil for growing crops and raw materials such as timber and wood. Yet, the majority of the ecosystem services upon which we all depend, are in decline.  

Integrating nature into financial decision-making will help promote long-term sustainability. Although this will require system changes, incorporating new metrics and reconfiguring disclosures, it also opens the way for innovation in value chains and investment opportunities.  

By recognising the Life Pillars and valuing their contribution to the global economy, we can better understand the importance of conserving and managing our resources to help ensure their continued contribution. 

Watch Markus Müller, our Chief Investment Officer for ESG and Karen Sack, Executive Director for the Ocean Risk and Resilience Action Alliance (ORRAA), explore the concept of Life Pillars and the importance of accounting for nature in financial services. 

Definitions

Land 

The land Life Pillar includes soils, climate, vegetation, terrain, and other natural resources, as the foundation for agriculture and other rural land uses.

Technically, the term "land" refers to a defined region of the Earth's surface that includes all characteristics of the biosphere that are immediately above or below it, such as the near-surface climate, the soil and terrain types, the surface hydrology (including shallow lakes, rivers, marshes, and swamps), the near-surface sedimentary layers and associated groundwater reserve, the plant and animal populations, the pattern of human settlement, and the physical outcomes of past and present human activity.

Ocean 

The ocean Life Pillar refers to all living and non-living components of the natural environment in the water, including the water itself.

We look at both marine and coastal ecosystems and the use of marine resources such as seafood. Ocean here is therefore a collective term for everything related to the water resources of our planet. This includes naturally-occurring water-borne objects, such as animals, and non-natural water-borne objects, such as plastic. Human activity is estimated to have severely altered two-thirds of the Ocean. 

Atmosphere

The atmosphere Life Pillar refers to the multiple atmospheric layers that envelop the planet. The atmosphere shields life on Earth from harmful ultraviolet (UV) radiation, insulates the planet to maintain a comfortable temperature, and prevents temperature extremes between day and night.

As with Land and Ocean, human activity (mostly industrial activity) has had a significant impact on the atmosphere. In 2021, the total amount of anthropogenic (i.e. human caused) fossil CO² emissions worldwide was 38.0 billon tons, with about 80% of these emissions from G20 countries.