As the international community continues to tackle the two-fold climate and biodiversity crisis, interest is growing in investing for the management and preservation of natural capital. This trend is seen as an obvious solution to reduce emissions, restore biodiversity and stimulate sustainable and job-creating economic growth. However, only a limited number of initiatives, aimed at promoting nature as an investment opportunity, have been set up to date. And yet, half of the world’s GDP depends on natural capital.
The Natural Capital Investment Alliance was launched at the One Planet Summit for Biodiversity, in January 2021. The Alliance’s aim is to work with the asset management industry, an industry worth 120,000 billion dollars, and to raise private capital in a practical and effective manner, in favour of natural capital investment opportunities.
"Nature’s contribution to the global economy is estimated to be worth more than $125 trillion annually – greater than the entire world’s annual G.D.P. If we build conservation and nature-based solutions into our asset base and supply chains we will be able to drive significant economic growth for countries and businesses alike – including in areas such as the circular bioeconomy, ecotourism and green public infrastructure."
His Royal Highness The Prince of Wales
The Alliance, created as part of the Sustainable Markets Initiative launched by His Royal Highness The Prince of Wales, was co-founded by HSBC Pollination Climate Asset Management, Lombard Odier and Mirova.
Its aim is to complement existing initiatives and to create a stronger relationship between public sector and civil society experts in natural capital on the one hand and traditional investors on the other.
The Alliance has set itself the objective of raising $10 billion by 2022. It will serve as an investment platform for companies and financial institutions seeking to increase their investment in natural capital, to support the restoration of biodiversity, especially via carbon offsets.
Alliance members also wish to share their investment knowledge and expertise, so that natural capital can become an investment theme in its own right.
The idea is to demonstrate the scalability of dedicated investment vehicles and the large number of investment opportunities available, for all asset classes. This work relies on the individual and joint initiatives taken by founding members, such as Mirova’s dedicated Natural Capital Platform (https://www.mirova.com/fr/investir/capital-naturel), HSBC Pollination’s dedicated natural capital fund (https://www.assetmanagement.hsbc.fr/fr/professional-investors/investment-expertise/sustainable-investments/climateassetmanagement ) and Lombard Odier’s Natural Capital strategy (https://www.lombardodier.com/fr/contents/corporate-news/media-releases/2020/november/lombard-odier-launches-natural-c.html).
For further information
The Alliance was created at the initiative of His Royal Highness The Prince of Wales, as part of the Sustainable Markets Initiative
Its founding members, HSBC Pollination Climate Asset Management, Lombard Odier and Mirova, work hand in hand with the Sustainable Markets Initiative to structure the Alliance’s activities. Work on governance, stakeholder involvement and working groups is ongoing and will be set out in more detail in the first half of 2021.