natural capital

Natural capital is an investable theme – not just an exercise in risk management, writes Ashim Paun of Triton Partners.

The parent company of Sumitomo Mitsui Trust Bank, a gatekeeper for Japanese pension funds, is transforming its purpose to ‘balanced creation of both social value and economic value’.

Changes to how government buys carbon credits could see holders collectively benefit from a A$2.4bn windfall from sales on the open market instead.

The Portland-based firm is investing $1bn in vertical farms, raised from investors including San Francisco and El Paso public pension funds and the Development Bank of Japan.

Pollination’s strategic partnership with ANZ Group, seen in the light of efforts to speed up closure of coal-fired power generation in Australia, shows natural capital is gaining momentum as a standalone asset class.

The European Investment Bank, Allianz France and the Wortmann Family Office are among the VC fund’s investors.

The Australian agtech investor invested alongside Macdoch Ventures and Global Founders Capital in nature-based solutions provider Cecil.

The concept of natural capital is gaining traction, aided by the launch of dedicated strategies. But certain complexities will need to be smoothed out as it gets off the ground.

The firm is working on two strategies – one for institutional investors that will target farmland and timberland assets, and one that will focus on corporates and their carbon offset needs.

Some will wield influence over large pools of capital; others will plant smaller seeds and set an example to follow.