Finding purpose and returns in nature
Pardon the Interruption
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mallowstreet was delighted to bring leaders from across the pensions and insurance industry together for our half-day investment focus discussion on natural capital. With the Taskforce on Nature-related Financial Disclosures (TNFD) starting to become a more popular framework following the roll-out of climate disclosures, nature is starting to join the spotlight in portfolio constructions.
We started the day with an opening with a keynote by Craig Campbell, Partner at consulting firm Aon, who highlighted the stark realities of climate change and biodiversity loss, referencing alarming statistics from the IPCC about rising global temperatures. This led to a discussion on the implications for pension funds and asset owners, framing natural capital as both an investment opportunity and a risk factor. The decline in biodiversity was attributed to various causes, including climate change and pollution, prompting a call for a more holistic approach to investment strategies considering these multifaceted issues.
We then moved to our two masterclass sessions, with Nuveen and Gresham House.
Gresham House discussed the findings of their recent mallowstreet report and how to access opportunities from nature. They stressed that investing in assets that reduce or avoid damage to nature, as well as those that restore and regenerate nature, present an exciting opportunity. However, these investments must deliver a financial return for investors.
Nuveen discussed the role of natural capital investments in a portfolio, and accounting for the broader value of natural assets. With TNFD just around the corner, it is crucial for schemes to be able to measure and report on the value their investments have for the environment, in addition to the financial benefits natural capital can provide to portfolios.
We completed the event with a great interactive panel discussion featuring Laura Chapman from London CIV, Jenny Buck, ex-CIO of Tesco pension fund, and Hill Gaston of Mercer.
The panel discussed the concept of natural capital and its implications for financial investing. Exploring opportunities in sustainable resource use and biodiversity, the speakers also touched on fiduciary duty, questioning how institutional investors balance risk management with the need for impactful investments. The three panellists acknowledged the complexity of measuring nature-related risks and benefits, noting a lack of standardised metrics compared with climate-related data. The discussion concluded with a recognition that while natural capital presents significant opportunities, it requires careful consideration of various factors, including governance and community impact.
It was a great day, and we hope to welcome you to our upcoming ‘Investing for the Planet’ Indaba on November 12th.
Investing for the Planet Indaba
Date: 12 November 2024 08:30 – 18:00
Venue: South Place Hotel, 3 South Place, London EC2M 2AF
Venue: South Place Hotel, 3 South Place, London EC2M 2AF
