Nature is becoming increasingly valued in global markets. Nature related risks are being increasingly counted, forming a new generation of credit markets. More broadly, the valuation and tradability of nature is core to surging nature markets. These and other developments are driving nature-linked financial innovation and a growing trade in nature assets.
Nature markets will be shaped in particular by a new wave of businesses designed at their core to create economic value by harnessing nature in equitable, regenerative ways, or ‘nature positive ventures’. A generation of early-stage investors is making this possible, seeking profitable opportunities to support these businesses.
Nature, especially biodiversity, is complex, all the more so when it interfaces with market dynamics. Data, relevant analytic tools, and financial instruments are all needed to make the right investment decisions. Business and market-shaping policies, regulations and standards are evolving rapidly, as are citizens’ perspectives and actions as consumers, investors, tax-payers and voters.
Successful nature positive investors need to be able to mobilise decision-relevant knowledge about this dynamic, multi-faceted topic and context.
More prominent investors may be able to build adequate internal capabilities, augmented by contracting out for specialist knowledge. Yet such investors tend to have little appetite for supporting the early-stage growth of businesses most likely to support purposeful nature markets.
Early-stage investors are vital in making the right bets on businesses that will shape the nature markets we need. Yet they rarely have the resources or institutional arrangements to either internalise or out-source the requisite capabilities and networks.
The Nature Investor Circle aims to and is designed to meet the needs of early stage investors in nature positive ventures.
In doing so, it will draw in leading experts, those involved in citizen action, policy advocacy and others shaping the ecosystem in which nature markets are evolving. It will:
- Provide a powerful, real-time learning experience for early-stage investors.
- Encourage pre-competitive, peer-to-peer sharing, leading to more strengthened and collaborative investment strategies.
- Provide a basis for collective action in shaping the ecosystem within which nature markets are evolving, enhancing opportunities for nature positive ventures to succeed.
The Nature Investor Circle will complement the nature positive impact of other ecosystem initiatives. It will achieve this by collaborating with initiatives that focus on financing later-stage nature ventures, providing a platform for policy interface, and influencing the clean tech sphere more broadly.
NatureFinance will host the Nature Investor Circle.
NatureFinance is a Geneva-based, international not-for-profit dedicated to aligning global finance with equitable, nature positive outcomes, thereby contributing to efforts to address climate goals and a just transition to sustainable development.
NatureFinance will be joined in this venture by a number of partners.