EXCLUSIVE: M&G Investments is to rebrand its climate solutions fund as a nature and biodiversity fund at the end of October, in order to capitalise on growing interest in the theme and deliver a wider impact. Michael Rae and Ben Constable Maxwell told me that it will add three new verticals: sustainable food, agriculture and forestry as well as clean and accessible water. They join the existing clean energy, green tech and circular economy themes. This will require a realignment of around 48% of its portfolio. While there are "amazing businesses" in its existing fund, Rae said that "if you narrow your focus to [emissions], you're doing a bit of an injustice to the mechanism of impact investing". They also hope it will help the fund perform better, with greater diversification allowing it to weather the storm of more difficult economic conditions. Challenging times in the green technology space over the past few years - which have been well reported - mean the fund has previously underperformed its benchmark. Modelling of the new portfolio however, signal it could deliver a better performance than its previous iteration. Read more here on how its framework is based around the planetary boundaries guidance and the challenges of investing in certain themes:
Genevieve Redgrave’s Post
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🌳 Preserving our nature and biodiversity can feel like an impossible task, writes Hadewych Kuiper in her newest column: "We're already perilously close to the planet's breaking points, and there is so much to recover. But, by breaking the goals down into smaller, manageable steps, we can do it." 💰 At Triodos, we're dedicating EUR 500 million to nature-based financing. If 377 banks or investment firms like us did the same thing, we will reach USD 200 billion - the goal set in the Kunming-Montreal Global Biodiversity Framework (GBF) - no problem, argues Kuiper: "With over 10,000 banks and 22,000 investment houses in the world, there is no reason why we should not be able to do this. Together, we are powerful." Read Hadewych Kuiper's full column on our website. #ImpactInvesting #Biodiversity #NatureBasedFinance #NatureBasedSolutions #NaturalCapitalAccounting
Unlocking the vast potential of nature-based financing
triodos-im.com
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Lucian Peppelenbos is a Climate and Biodiversity Strategist at Robeco, where he is primarily responsible for overseeing Robeco’s work on decarbonising investment portfolios and integrating climate and nature-related risks and opportunities in the investment processes. “Biodiversity for us is not a matter of protecting an exotic frog in South America or a rare orchid in Asia – important though that is. More than half of the world’s economic output valued at US$44 trillion is dependent on nature, while nature loss costs upwards of US$479 billion a year. Our own study showed that one-quarter of Robeco’s assets under management were dependent on at least one ecosystem service, while 29% of investments impacted biodiversity in some way. Protecting biodiversity is therefore not just ‘nice to have’ – it’s a matter of economic necessity.” Lucian will be presenting at Global Investment Institute’s upcoming Net Zero Investment Forum, taking place on Wednesday, 27 March 2024 at the Grand Hyatt Melbourne, Victoria. To register your interest in attending, please contact Zlatan K. or for more information email [email protected]. Numbers are strictly limited and fast approaching capacity. Marlot
Spotlight on Lucian Peppelenbos, Climate & Biodiversity Strategist, Robeco — Global Investment Institute
globalii.com.au
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Are you factoring nature and biodiversity in your investment strategy? In our latest webinar, we uncovered that around two-thirds of attendees are already considering nature-related issues in the next 1-2 years. Learn about the crucial nature-related issues, regulations, and steps to achieve better results in this blog. https://okt.to/qkvo1y #ResponsibleInvestment #Biodiversity #NaturalCapital #InvestmentStrategy
Factoring nature into your investment strategy: why, how and what next?
hymans.co.uk
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I had the pleasure of chairing an excellent panel that kicked off the FAIS 2024 event this year. Sadly, this headline is itself quite counterproductive (a bit of a bumble, in my opinion!). Our panel had a great discussion around the complementarity of timberland investments with climate, biodiversity, and other objectives. They also explained how taking a broader view than looking only at the forest -- including into landscapes the value chain -- creates greater opportunities for scalability. The issue is current crediting frameworks fail to capture all the value created! If you were at FAIS or not, what do you think? https://lnkd.in/eAAVRJZM
Market not recognising timberland's full sustainability benefits
environmental-finance.com
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🌟 Reflections on London Climate Action Week #LCAW LCAW was filled with a mix of excitement and anxiety, especially with the upcoming elections on the horizon. Here are some key take-aways: 💡 #NatureTech One of the standout themes was the intersection of technology and nature, with new partnerships highlighted such as the NatureTech Alliance (Salesforce, ERM, NatureMetrics, Planet), and notable work shown by other leaders such as Meta and Tracy Johns. A well curated session by Nature4Climate enhanced the buzz, but the question remains on demand. At Clarmondial AG we look forward to exploring how nature-tech can extend beyond #VoluntaryCarbonMarkets (VCMs) to address supply chain resilience, within and Beyond Value Chain Mitigation and market access. We look forward to exploring new partnerships that contribute to shaping an action-oriented data architecture for nature, including with Rainforest Alliance CDP Conservation International USAID and in the Mt. Kenya landscape with IKEA Foundation (see: https://lnkd.in/dEXc5TFs) 💸 De-risking & #BlendedFinance The week highlighted the insurance industry’s potential in de-risking climate action, notably by Howden and Boston Consulting Group (BCG). The insurance ecosystem, credit rating agencies and regulators have a vital role in enabling capital flows from regulated institutional investors for climate action. We’d like to see more discussions around (a) practical data-sharing solutions for developing innovative insurance and financing products, (b) work to address the credit rating challenges of blended finance funds (thank you to Convergence Blended Finance Climate Policy Initiative Dentons for continued action on this topic), and (c) insurance companies providing strategic risk capital for testing and scaling new climate finance funds (thank you AXA Investment Managers Legal & General Investment Management (LGIM) for showing leadership on this topic). 🚢 #SupplyChains – The Missing Link Interestingly, supply chains were underrepresented in discussions. Our work Clarmondial AG shows that climate change is already impacting supply chains and sourcing landscapes, necessitating new approaches. Industry coalitions such as International Civil Aviation Organization #CORSIA and the KliK Foundation offer valuable insights that could serve as models to drive climate investment. Thank you also World Climate Foundation Jens Nielsen for showcasing experiences from a range of sectors such as International Solar Alliance. VCMs alone cannot and will not mobilise enough funding to tackle the climate crisis, and focusing on supply chains as an investment lever is crucial. 👏 In short, LCAW was a week of promising discussions. We invite discussions on how we can follow up on some of the points raised above and continue to work with existing and new partners to mobilize capital for climate action.
Catalyzing impact investments in the Mt Kenya landscape
https://www.clarmondial.com
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Appreciate Clarmondial AG's insights from #LCAW, particularly with respect to the importance of "supply chains as an investment lever". Corporate fear of the $ impact of climate-related business risks can be a much more concrete driver vs. net zero commitments that rely on the #VCM.
🌟 Reflections on London Climate Action Week #LCAW LCAW was filled with a mix of excitement and anxiety, especially with the upcoming elections on the horizon. Here are some key take-aways: 💡 #NatureTech One of the standout themes was the intersection of technology and nature, with new partnerships highlighted such as the NatureTech Alliance (Salesforce, ERM, NatureMetrics, Planet), and notable work shown by other leaders such as Meta and Tracy Johns. A well curated session by Nature4Climate enhanced the buzz, but the question remains on demand. At Clarmondial AG we look forward to exploring how nature-tech can extend beyond #VoluntaryCarbonMarkets (VCMs) to address supply chain resilience, within and Beyond Value Chain Mitigation and market access. We look forward to exploring new partnerships that contribute to shaping an action-oriented data architecture for nature, including with Rainforest Alliance CDP Conservation International USAID and in the Mt. Kenya landscape with IKEA Foundation (see: https://lnkd.in/dEXc5TFs) 💸 De-risking & #BlendedFinance The week highlighted the insurance industry’s potential in de-risking climate action, notably by Howden and Boston Consulting Group (BCG). The insurance ecosystem, credit rating agencies and regulators have a vital role in enabling capital flows from regulated institutional investors for climate action. We’d like to see more discussions around (a) practical data-sharing solutions for developing innovative insurance and financing products, (b) work to address the credit rating challenges of blended finance funds (thank you to Convergence Blended Finance Climate Policy Initiative Dentons for continued action on this topic), and (c) insurance companies providing strategic risk capital for testing and scaling new climate finance funds (thank you AXA Investment Managers Legal & General Investment Management (LGIM) for showing leadership on this topic). 🚢 #SupplyChains – The Missing Link Interestingly, supply chains were underrepresented in discussions. Our work Clarmondial AG shows that climate change is already impacting supply chains and sourcing landscapes, necessitating new approaches. Industry coalitions such as International Civil Aviation Organization #CORSIA and the KliK Foundation offer valuable insights that could serve as models to drive climate investment. Thank you also World Climate Foundation Jens Nielsen for showcasing experiences from a range of sectors such as International Solar Alliance. VCMs alone cannot and will not mobilise enough funding to tackle the climate crisis, and focusing on supply chains as an investment lever is crucial. 👏 In short, LCAW was a week of promising discussions. We invite discussions on how we can follow up on some of the points raised above and continue to work with existing and new partners to mobilize capital for climate action.
Catalyzing impact investments in the Mt Kenya landscape
https://www.clarmondial.com
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Are you factoring nature and biodiversity in your investment strategy? In our latest webinar, we uncovered that around two-thirds of attendees are already considering nature-related issues in the next 1-2 years. Learn about the crucial nature-related issues, regulations, and steps to achieve better results in this blog. https://okt.to/HcCMeq #ResponsibleInvestment #Biodiversity #NaturalCapital #InvestmentStrategy
Factoring nature into your investment strategy: why, how and what next?
hymans.co.uk
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Happy World Environment Day! 💚 "We cannot turn back time, but we can grow forests, revive water sources, and bring back soils. We are the generation that can make peace with land." #GenerationRestoration We love the inspirational message on the World Environment Day official website. Investments in nature-based solutions need to more than double to US$542 billion by 2030 to meet the world’s climate, biodiversity and ecosystem restoration goals. We are the generation that can make it happen. Increasingly, companies are making net zero pledges, and as investments transition from polluting asset classes, it raises the question of where that money will transition to. Of the land-based natural climate solutions available to us, forests have the greatest potential for carbon sequestration backed by science (https://lnkd.in/d4wd2p6z). They also provide an important array of additional benefits such as biodiversity, improved water, soil and air, and enhanced rural livelihoods. However, big corporate and finance organizations simply do not have the mechanisms it would normally use to deploy funds available to it when considering NbS projects. Due diligence, the process of comprehensive research and analysis, plays a crucial role in nature-based investments. It serves as the bridge between financial aspirations and environmental stewardship. By conducting due diligence, investors can identify risks, maximize returns, and ensure that their investments align with sustainable practices and regulatory requirements. Xilva is on a mission to use due diligence as an enabler of funding nature by providing a standardized, data-driven framework and methodology (the blueprint for nature-based due diligence) to assess nature-based projects consistently. By identifying issues that need to be resolved or mitigated, we create a platform for both sides - funders and nature projects, to engage and mutually agree on milestones so funders receive the necessary assurance to deploy funds, and projects improve to become investable. If you are interested in learning more about our unique formula, speak to any of us. Liling Koh Jamie Micah Lawrence Tim Duehrkoop Yeray Martínez Montesdeoca Núria Garcia-Forner 𝘗.𝘚. 𝘎𝘐𝘗𝘏𝘠 𝘮𝘢𝘥𝘦 𝘴𝘰𝘮𝘦 𝘤𝘰𝘰𝘭 𝘎𝘐𝘍𝘴 𝘧𝘰𝘳 𝘞𝘌𝘋 𝘩𝘦𝘳𝘦: https://lnkd.in/dwbdisve
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Want to be one of the first to read new research about biodiversity, donations, brown indices, ESG ETFs and fees, greenwashing, labeled bonds, climate engagement, framing, female finance, or a new risk measure by Florian Heeb, Julian Kölbel and many more? #esg #impactinvesting #wealthmanagement #sustainability Otto Lucius, Dr. Bernd Spendig, Aladar Tepelea https://lnkd.in/g85zcBX4
Biodiversity diversion: Researchpost #165 - Responsible Investment Research Blog
https://prof-soehnholz.com
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ECOncrete is profiled among twelve innovative companies in this new BloombergNEF report highlighting businesses opportunities in curbing nature-loss. 👉 Learn more in this article https://lnkd.in/dxsu7bDz
How do you make money investing in #nature? This is a question clients around the world have asked us. And answering it is the *key* to scaling-up action on nature (as it has been on climate). We’ve just released 12 case studies profiling companies that are realizing financial gains by selling goods and services that mitigate the drivers of nature loss at #COP16. Some key messages: - There are a range of companies, across various industries that do this, from multi-billion-dollar publicly listed enterprises (e.g. PTx Trimble which sells precision pesticide application tech) to small-scale startups completing early rounds of fundraising (e.g. NatureMetrics which uses environmental DNA to monitor biodiversity). Other features companies include: Aquafil Group, ECOncrete, Ecolab, Forico Pty Limited, Gradiant, Perfect Day, Phool.co, Redwood Materials, Slow, Wilder Harrier - The investment case for financing activities that protect and restore nature (e.g. via exotic financial instruments) is challenging. Instead, shifting the financial flows to companies in the real economy that produce less harmful alternatives presents the most promising and immediate avenue for nature-related investment. - Around $5 trillion in private finance flows go to activities with direct negative impacts on nature. Turning this ship around is thus a significant opportunity. A free copy of the report is here: https://lnkd.in/g33hPQ-g BloombergNEF, Alistair Purdie, Hugh Bromley, Alexander Liddington, Helen Ramsbottom, Grace Osborne, Melanie Rua, MBA, Surabhi Nagar, Emily Garverick, Camille Wee, Dr. Andy Leach, Stephanie Díaz
Twelve Case Studies Survey the Business Opportunities in Curbing Nature Loss | BloombergNEF
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Sustainable and Impact Investing at M&G Investments
2moThanks Genevieve Redgrave and Environmental Finance for covering this. We're super motivated by the prospect of applying a tried n tested impact framework to investing in high quality solutions to the planet's biggest challenges. Happy to discuss with anyone interested #planetaryboundaries