Reimagining Asset Management

United Kingdom | 07 October 2025

A new paradigm for resilience

As climate volatility intensifies and infrastructure ages, asset management faces unprecedented challenges. Traditional approaches alone are no longer sufficient. Nature-based Solutions (NBS) and Natural Flood Management (NFM), which have been trialled and refined over the past decade, offer resilient, adaptive and sustainable strategies. By working with natural processes to manage water, reduce flood risk and enhance biodiversity, these approaches provide a compelling alternative to conventional “grey” infrastructure.

Dr Kat Ibbotson

Director, Strategic Advisory

United Kingdom

Contact

Why NBS and NFM matter

NBS and NFM are environmentally sound and economically smart. By leveraging wetlands, green corridors and urban forests, these solutions extend asset lifespans, reduce maintenance costs and deliver co-benefits such as carbon sequestration, improved air quality and community well-being. Governments and the private sector are increasingly investing in these approaches, driven by ESG mandates, Biodiversity Net Gain requirements and the recognition of nature’s role in risk reduction. Insurance companies are beginning to factor NBS into risk models, acknowledging nature’s ability to reduce the likelihood and severity of claims.

Innovative financing mechanisms are emerging - blending public and private capital, unlocking larger investments and tying returns to measurable environmental outcomes.

Challenges and complexities

Despite growing momentum, several challenges remain. The evidence base in the UK is still developing, with a need for standardised metrics and long-term monitoring to compare NBS with traditional solutions. Language is another barrier: in addition to NBS and NFM, terms like “green infrastructure,” “blue-green infrastructure” and “nature-positive” are often used interchangeably, creating confusion among stakeholders. A common taxonomy is urgently needed to build trust among investors, engineers and policymakers.

Valuing nature is complex. Unlike physical assets, natural assets change over time and deliver multiple, interlinked benefits. Traditional accounting methods struggle to capture this. Equally, modelling the efficacy of NBS can be challenging, as performance depends on dynamic ecological processes, site conditions and long-term changes that are inherently uncertain. Emerging frameworks such as natural capital accounting and the Taskforce on Nature-related Financial Disclosures (TNFD) are beginning to fill this gap, offering new ways to assess and report on nature-related risks and opportunities.

From theory to practice: embedding NBS and NFM in asset management

Mainstreaming NBS and NFM requires integrating them into every stage of the asset management lifecycle, from planning and design to operation and decommissioning. Natural assets should be treated with the same rigour as physical ones, including setting performance targets, conducting risk assessments, and allocating maintenance budgets.

An outcome-based approach is essential. Rather than focusing solely on cost, asset managers should consider broader outcomes: contribution to managing flood risk, improved biodiversity and enhanced community resilience. This aligns with systems thinking, where infrastructure is viewed as part of a broader socio-ecological system. Cities like Copenhagen and New York offer compelling case studies, demonstrating how integrating NBS into urban planning can manage stormwater, reduce combined sewer overflows and build resilience at scale.

Mobilising resources for the future

Unlocking funding in NBS and NFM requires collaboration across public and private sectors. While new financial models are being explored internationally, their application in the UK is still emerging and requires further evidence.

Financing remains a challenge, with public budgets often limited and private sector involvement dependent on clear outcomes and robust assurance frameworks. Independent validation of environmental benefits, such as contribution to flood risk reduction or carbon sequestration, can help build confidence and encourage broader participation.

Governance and leadership: who leads the change?

Leadership must be collaborative and cross-sectoral. While government plays a critical role in setting standards and providing seed funding, the private sector, civil society and local authorities must also be empowered to act. Combined authorities, such as the Greater Manchester Combined Authority (GMCA), can harness local pride and collaborative networks to drive investment in nature. Water Regulated and Non-Regulated organisations exposed directly to climate and nature-related risks, are well-positioned to lead.

Governance structures must allow for innovation and even failure. Building a market for NBS/NFM requires experimentation, learning by doing and a willingness to adapt.

The role of communication: framing, storytelling, and public engagement

Changing the narrative is essential. NBS and NFM must be seen as essential, not optional. Compelling stories about how nature protects homes, supports economies and enhances quality of life can build momentum. Communication should be tailored, investors need to hear about returns and risk reduction, engineers need clarity on standards and performance metrics, and communities need to understand local impacts. Training programmes and public procurement processes should be reformed to prioritise nature-positive outcomes and involve civil society in decision-making.

The role of data, digital and AI in asset resilience and NBS

The effective use of data, digital technologies and artificial intelligence is increasingly central to building asset resilience and supporting NBS. Across the sector, organisations are leveraging real-time data from smart sensors and digital networks to monitor asset performance, anticipate risks and inform proactive maintenance. AI and machine learning are enabling predictive analytics, such as forecasting pipe bursts or optimising inspection schedules, which shifts asset management from reactive to proactive.

These digital tools are also vital for evaluating and scaling NBS, as robust data helps quantify benefits like flood risk management and biodiversity, building confidence in nature-positive approaches. However, realising this potential requires ongoing investment in data quality, integration and digital skills, as well as greater openness in sharing outcomes to accelerate learning and adoption across the industry. Driving a data and evidence-based approach to investment and targeted interventions.

Building a resilient future through nature

Integrating NBS and NFM into asset management is both a technical and societal opportunity: it invites us to rethink how we design, fund and finance and value infrastructure in a world of increasing uncertainty.

Key Recommendations:

- Focus in UK-based pilots and evidence gathering.
- Develop common language and valuation frameworks.
- Foster cross-sector leadership and public engagement.

By embracing nature as a partner, we can build infrastructure that is resilient, regenerative and rooted in the communities it serves. The path forward will require new partnerships, metrics and ways of thinking but the rewards are resilient assets, thriving ecosystems and healthier societies.

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