Mirova Predicts Growth in Natural Capital Investing
Efforts to promote biodiversity and protect the natural world swung into action in September. A number of global events, starting with the UN’s Biodiversity Summit on September 30, attracted focus and funding to projects designed to protect and restore nature.
The One Planet Summit, which takes place in Marseille in January 2021, is particularly notable for its backing from Emmanuel Macron, the President of France, as well as the Secretary-General of the United Nations, and the President of the World Bank. Mr Macron is a strong supporter of protection for the natural world and told the Financial Times earlier this year that he would work to put an end to “hyper-financialised” societies : “Covid-19 might offer an opportunity to make the case that he is trying to humanise capitalism. That includes, putting an end to a “hyper-financialised” world, greater efforts to save the planet from the ravages of global warming “.
“The Marseille event supported by President Macron, and other events like it, help to spread the word about the need and the opportunity for protecting biodiversity and will hopefully attract more funding for it,” says Gautier Queru, Director of Mirova’s natural capital investing strategy1.
“Public and private institutions are becoming more and more interested in this frontier market for green finance. Mirova’s clients have been aware of the natural capital asset class development and Mirova is at the forefront of helping both investors, project operators and local communities to address the challenges of conserving natural capital,” Queru adds.
The impact of COVID-19 could actually be positive for conservation efforts, with prominent figures and organisations redoubling their green commitments in the wake of the pandemic. António Guterres, the United Nations Secretary-General said: “We have a responsibility to recover better” than after the 2008 global financial crisis.
Some countries have increased efforts to make nature a focus of their COVID-19-related economic stimulus and recovery. Germany, for one, pledged €700 million2 for forest conservation and management in a stimulus package that it announced in June 2020. Meanwhile, New Zealand announced a $1.1 billion program to create 11,000 jobs3 through investment in wetlands and riverbanks, removing invasive species, and improving tourism and recreation services on public land.
“COVID-19 is a tragic event, but nature could be a big winner from it,” notes Queru.
Other upcoming biodiversity events include the UN Convention on Biological Diversity COP 15, which takes place in May 2021 in China. In addition, the UN Convention on Climate COP26 will be held in Glasgow in November 2021.
For further reading:
1 The Land Degradation Neutrality strategy is exposed to the following risks: loss of capital risk, deal flow risk, operational risk, liquidity risk, country risk, market risk, legal and regulatory risk, currency risk, counterparty risk, project risk, valuation risk.
2 Source: Germany gives energy transition mild push with economic stimulus programme
3 Source: $1.1 billion investment to create 11,000 environment jobs in our regions
Mirova is a partner of the UN in its efforts to help protect the natural world. Mirova’s natural capital investing strategy was set up in conjunction with the United Nations Convention to make long-term investments in sustainable land management and in natural capital projects worldwide.
The strategy has attracted strong support from public investors including the European Investment Bank, Agence Française de Développement, Gouvernement du Grand-Duché de Luxembourg and UK Secretary of State for Environment, Food and Rural Affairs.
Mirova Natural Capital Limited
UK Private limited company
Company registration number: 7740692 – Authorized and Regulated by the Financial Conduct Authority ("FCA")
Registered office: 18 St. Swithin's Lane, London, England, EC4N 8AD.
The services of Mirova Natural Capital Limited are only available to professional clients and eligible counterparties. They are not available to retail clients. Mirova Natural Capital Limited is wholly owned by Mirova.
www.althelia.com
Mirova
Portfolio management company - French Public Limited liability company
Regulated by AMF under n°GP 02-014
RCS Paris n°394 648 216
Registered Office: 59, Avenue Pierre Mendes France – 75013 – Paris
Mirova is an affiliate of Natixis Investment Managers.
www.mirova.com
Natixis Investment Managers
Portfolio management company - French Public Limited liability company
RCS Paris n°453 952 681
Registered Office: 43, Avenue Pierre Mendes France – 75013 – Paris
Natixis Investment Managers is a subsidiary of Natixis.
www.im.natixis.com
This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.
The One Planet Summit, which takes place in Marseille in January 2021, is particularly notable for its backing from Emmanuel Macron, the President of France, as well as the Secretary-General of the United Nations, and the President of the World Bank. Mr Macron is a strong supporter of protection for the natural world and told the Financial Times earlier this year that he would work to put an end to “hyper-financialised” societies : “Covid-19 might offer an opportunity to make the case that he is trying to humanise capitalism. That includes, putting an end to a “hyper-financialised” world, greater efforts to save the planet from the ravages of global warming “.
“The Marseille event supported by President Macron, and other events like it, help to spread the word about the need and the opportunity for protecting biodiversity and will hopefully attract more funding for it,” says Gautier Queru, Director of Mirova’s natural capital investing strategy1.
“Public and private institutions are becoming more and more interested in this frontier market for green finance. Mirova’s clients have been aware of the natural capital asset class development and Mirova is at the forefront of helping both investors, project operators and local communities to address the challenges of conserving natural capital,” Queru adds.
The impact of COVID-19 could actually be positive for conservation efforts, with prominent figures and organisations redoubling their green commitments in the wake of the pandemic. António Guterres, the United Nations Secretary-General said: “We have a responsibility to recover better” than after the 2008 global financial crisis.
Some countries have increased efforts to make nature a focus of their COVID-19-related economic stimulus and recovery. Germany, for one, pledged €700 million2 for forest conservation and management in a stimulus package that it announced in June 2020. Meanwhile, New Zealand announced a $1.1 billion program to create 11,000 jobs3 through investment in wetlands and riverbanks, removing invasive species, and improving tourism and recreation services on public land.
“COVID-19 is a tragic event, but nature could be a big winner from it,” notes Queru.
Other upcoming biodiversity events include the UN Convention on Biological Diversity COP 15, which takes place in May 2021 in China. In addition, the UN Convention on Climate COP26 will be held in Glasgow in November 2021.
For further reading:
- Mirova Invests in Sustainable Forestry in West Africa
- Mirova Funds Kenyan Smallholder Farmers
- First Investment and First Strategic Board Meeting for the LDN Fund
- Sustainable risk-adjusted returns, through sustainable land use and natural capital
- Finance Can and Must Play its Role in Fighting Land Degradation
- Mirova Among the ImpactAssets 50 for its Natural Capital Activities
- What is Natural Capital (VIDEO)?
2 Source: Germany gives energy transition mild push with economic stimulus programme
3 Source: $1.1 billion investment to create 11,000 environment jobs in our regions
Mirova is a partner of the UN in its efforts to help protect the natural world. Mirova’s natural capital investing strategy was set up in conjunction with the United Nations Convention to make long-term investments in sustainable land management and in natural capital projects worldwide.
The strategy has attracted strong support from public investors including the European Investment Bank, Agence Française de Développement, Gouvernement du Grand-Duché de Luxembourg and UK Secretary of State for Environment, Food and Rural Affairs.
Mirova Natural Capital Limited
UK Private limited company
Company registration number: 7740692 – Authorized and Regulated by the Financial Conduct Authority ("FCA")
Registered office: 18 St. Swithin's Lane, London, England, EC4N 8AD.
The services of Mirova Natural Capital Limited are only available to professional clients and eligible counterparties. They are not available to retail clients. Mirova Natural Capital Limited is wholly owned by Mirova.
www.althelia.com
Mirova
Portfolio management company - French Public Limited liability company
Regulated by AMF under n°GP 02-014
RCS Paris n°394 648 216
Registered Office: 59, Avenue Pierre Mendes France – 75013 – Paris
Mirova is an affiliate of Natixis Investment Managers.
www.mirova.com
Natixis Investment Managers
Portfolio management company - French Public Limited liability company
RCS Paris n°453 952 681
Registered Office: 43, Avenue Pierre Mendes France – 75013 – Paris
Natixis Investment Managers is a subsidiary of Natixis.
www.im.natixis.com
This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.