Across the United States and around the world, people are experiencing climate change through water. Rivers are diminishing. Floods are becoming more destructive. Extreme drought is fueling more intense wildfires. Coastal communities are facing rising seas. For many people, climate change isn’t an abstract concept. It’s a daily reality—one that increasingly threatens water supplies, food systems and local economies.
But these impacts aren’t just the result of a changing climate. They are also the outcome of decades of underinvestment in nature and strategies that make communities more resilient. If we want to reduce climate risks for people, we need to invest in nature.
As part of its Environment Program, the Walton Family Foundation is launching the Water and Nature Fund to advance solutions that work with nature to protect rivers, oceans and the communities that depend on them.
We know that when people take care of nature, nature takes care of people. Healthy forests store and filter water. Wetlands reduce flood risk. Coastal ecosystems buffer storms. Working lands, when managed well, can improve water quality and strengthen food systems.
These are not just environmental benefits. They are practical, cost-effective solutions to some of the most pressing challenges communities face.
Unfortunately, nature-based solutions are significantly underfunded. Only a small share of global impact investment is directed toward water, oceans and climate adaptation. The Water and Nature Fund is designed to help close that gap.
The Water and Nature Fund will invest in innovative projects that use the power of nature to advance solutions addressing the significant water challenges we face. The fund will issue loans and guarantees that qualify as program-related investments.
The foundation will seek to invest where others don’t, in hopes of derisking early nature-based solutions to climate resilience and ultimately drive more capital to this important work. Loans and investments may be made with the expectation that funds may be paid back more slowly and at a lower rate of return than a traditional investment. We are launching the fund with $25 million.
We believe that by making investments that are focused on impact over financial returns, we can demonstrate the viability of nature-based solutions.
The Water and Nature Fund will be a revolving fund, with financial returns from investments reinvested into new projects benefiting nature and communities. This helps maximize the impact of every dollar.
We believe that by making investments that are focused on impact over financial returns, we can demonstrate the viability of nature-based solutions. Successful projects will attract and build connections with more traditional investors, unlock additional funding over time, and increase the impact and reach of critical strategies to address climate change.
These investments can also create economic opportunities for the people whose livelihoods depend on healthy natural systems. Farmers can benefit from investments that make working lands more productive and resilient. Fishers and coastal communities benefit from healthier fisheries and coastal ecosystems. And entrepreneurs and project developers can gain access to capital to build and scale new approaches to conservation and climate resilience.
The Water and Nature Fund will work alongside our grants and focus on strategies that align with and advance the work of the Foundation’s Environment Program. These include:
- Protecting and restoring wetlands to reduce flood risks and improve water quality.
- Improving forest management in headwaters to support healthy rivers, wetlands and forests.
- Protecting and restoring critical coastal habitats, including reefs, coastal wetlands, seagrasses and mangroves.
- Improving fisheries management for healthier, more economically resilient fisheries.
- Improving agricultural management by working with farmers to conserve and improve water quality.
For more than two decades, the foundation has helped our grantees build the science, policy frameworks and partnerships needed to advance nature-based solutions. The Water and Nature Fund builds from this legacy to continue to support the future for both communities and nature. Learn more in this FAQ about the fund.
