Summary of Three Key Events on Natural Capital Investing November 2019, and outlook 2020
Global Landscapes Forum summary
How can we move sustainable land-use financing into the mainstream?” That was the key question on 30 November 2019, at the Global Landscapes Forum convened in Luxembourg for its fourth annual Investment Case Symposium, held back-to-back with the UNEP Finance Initiative (UNEP FI) Regional Roundtable on Sustainable Finance. Discussions focused on the development of cutting-edge financial tools and mechanisms, ways to overcome investment risks, financial needs in landscapes, and new policies being enacted to increase the amount of money going to create sustainable landscapes for the future. The event was co-organized by Luxembourg for Finance and hosted by the Government of Luxembourg. The opening plenary examined the paradigm shift needed to support sustainable land-use projects with more ambition. The mid-day plenary discussed existing good practices and solutions in sustainable land-use finance that could be suitable for scaling up and replication in different landscapes. The closing plenary shifted the emphasis to a community of practice, where inclusiveness and knowledge sharing could inspire investor confidence in the benefits of collaboration and long-term partnership.
Investing in Nature and Climate Finance Day summaries
Finance for Tomorrow – in partnership with Mirova and IDH, The Sustainable Trade Initiative – organized the Investing in Nature event held on 27 November 2019, prior to the Climate Finance Day in Paris. It had the objective of raising awareness, promoting innovation and best practices, and building common ground amongst actors to support the development of the natural capital asset class. While an initial panel aimed to introduce and promote a better understanding of the natural capital sector, a second panel unpacked the underlying business models of investments in natural capital. The final panel explored the question: “How do underlying business models for natural capital fit with banking techniques and asset classes?” The event provided a valuable opportunity for international actors in the natural capital sector to build common understanding and share good practices. Finance for Tomorrow also organized a dedicated panel on Climate and Biodiversity during its flagship event, the Climate Finance Day, on the broader theme of “Financing the Just Transition”. Discussions showcased innovative solutions for natural capital investing and the connection with climate action.
Investing in Natural Capital summary
Environmental Finance’s Investing in Natural Capital conference on 25 November 2019 brought together more than 100 financiers, project developers and NGOs to explore the financial attractions of natural capital investments as well as the environmental benefits. The day began with the launch of a report from The Nature Conservancy (TNC) and Environmental Finance titled Investing in Nature – Private Finance for Nature-based Resilience. It included a survey which revealed that companies’ dependency on natural capital is now a factor in the investment decisions of many mainstream asset owners, such as pension funds and insurance companies, as well as specialist ‘impact’ investors. Subsequent panel sessions explored why institutional investors should care about natural capital and explained how natural capital risk assessments and portfolio analyses can be conducted. Other sessions presented thematic spotlights on water, forestry, oceans, biodiversity and agriculture, before a final panel discussion of how regulation and legislation can help preserve natural capital. There was particular interest in a proposed Task Force on Nature-related Financial Disclosures, along the lines of the influential Task Force on Climate-related Financial Disclosures. The proposed new task force would be expected in time for discussion at COP15 in Kunming in October 2020.