Natural Capital
Mirova has developed an investment platform dedicated to natural capital. The strategies aim to enable public, institutional and corporate investors to combine the potential for attractive returns and positive impact on nature by investing in projects that contribute to the preservation, restoration and regeneration of natural ecosystems.
At a glance
- Invest in strategies that target significant environmental and social impacts and attractive yield potential
- Fund projects and companies worldwide developing solutions for the preservation and restoration of natural capital with high environmental and social impact.
- Benefit from Mirova’s pioneering expertise and operational efficiency on natural capital.
Key figures
assets under management
Natural Capital : The Next Frontier
More than half of the world’s GDP depends on natural resources1. Our economies are essentially based on nature and the sustainability of our economic development depends largely on protecting these natural ecosystems.
Climate and nature are also interconnected issues, sources of risks and opportunities:
- Ecosystems are important carbon sinks: their restoration plays a significant role in the path towards neutrality of human-caused greenhouse gas (GHG) emissions by 2050, capturing 30% of emission reduction efforts in CO2 equivalent2.
- Aggravated climate and biodiversity risks lead to physical risks for businesses such as vulnerability of forests to rising temperatures and pest attacks, but also transition risks such as increased difficulty for businesses to offset non-eliminable life cycle emissions as part of their operations.
The rapid growth of investments in nature restoration and protection is therefore crucial: it is estimated that between 700 and 900 billion euros per year are needed by 2030 to restore biodiversity3. The adoption of a Global Framework for Biodiversity (GMB) at the 15th Conference of the Parties to the Convention on Biological Diversity (COP15) helped put nature at the centre of concerns.
Investing in natural capital is quickly becoming an asset class in its own right, and a source of diversification for investors.
Our strategies
Since its creation, Mirova has been committed to a responsible approach and to offering its clients innovative investment solutions. The development of its investment platform dedicated to natural capital in order to allocate more capital to projects that contribute to the protection and restoration of nature is an emblematic example of this process. The platform has participated in financing more than 70 projects and companies in emerging economies (Latin America, Africa and Southeast Asia), but also in developed markets, especially in Europe4.
By investing directly and on a large scale in natural capital, investors can increase the social and environmental impacts of their portfolios and contribute to the transition from a Net Zero economy that is positive for nature. At the same time, supported projects have the potential to generate attractive financial performance while risk reduction mechanisms can be put in place, particularly for investments in emerging countries (through public or philanthropic funds acting as a guarantor or frontline investor).
Mirova’s natural capital strategies support companies and projects through three complementary approaches: environmental assets protection, sustainable land use, sustainable ocean management.
ENVIRONMENTAL ASSETS: CONTRIBUTE TO NATURE REGENERATION
As countries and businesses strengthen their commitments to address the climate and nature crises, the need to scale up funding and investment in Nature-Based Solutions5 is now recognized as essential. According to the World Economic Forum, Nature-Based Solutions are expected to at least triple by 2030 and quadruple by 2050 if the world is to meet its climate change, biodiversity and land degradation targets6.
Mirova has developed investment strategies dedicated to “environmental assets” to enable institutional and corporate investors to contribute to the global objectives of nature protection (“Positive Nature”) and carbon neutrality (“Net Zero”).
Mirova selects projects that contribute to the fight against climate change and ecosystem regeneration, such as natural carbon sinks and ecosystem services.
Project funding is based on instruments such as high-quality carbon credits and biodiversity certificates. Particular attention is also paid to generating significant co-benefits for local communities.
Since 2012, Mirova has been a pioneer in financing nature-based solutions and has developed substantial know-how through the launch and management of many dedicated funds and mandates. Mirova has been building experience in carbon finance since 20057.
SUSTAINABLE LAND USE
More than 70% of the world’s land has been transformed relative to its natural state, and between 20 and 40% of the land is degraded8.
This strategy provides long-term financing, in equity or debt, to sustainable land use projects in three subsectors – forests, agroforestry and regenerative agriculture – enabling certified food and fibre production. The challenge is thus to enable the transition of global value chains, particularly in the agri-food sector.
Mirova seeks to produce positive effects on sustainable land restoration and management, climate change mitigation and adaptation, biodiversity protection, community integration and gender equality.
SUSTAINABLE OCEAN MANAGEMENT
Threatened by pollution, overfishing, warming and ecosystem degradation, oceans play a crucial role: covering 71% of the planet, they absorb more than 90% of the excess heat produced by human activities, shelter more than 50% of the world’s species and 3 billion people rely directly on marine and coastal biodiversity to support themselves9.
Our strategy for sustainable ocean management allows investments in sustainable marine resource management projects, reduction of marine pollution, and restoration and preservation of coastal and marine ecosystems.
This strategy aims to contribute to responsible management and use of the oceans and their resources while participating in the achievement of the Sustainable Development Goals (SDGs) as well as economic growth.
Discover our funds
Discover Mirova’s natural capital funds, which finance companies and projects through three complementary approaches: environmental assets protection, sustainable land use, sustainable ocean management.
Some strategies are managed in the form of mandates or funds dedicated to specific investors or companies.
Why invest ?
AN ATTRACTIVE ALTERNATIVE ASSET CLASS
- Investments that respond to major societal problems: mitigation and adaptation to climate change, reduction of natural risks, food security, preservation of life, socio-economic development, etc.
- Economically viable and sustainable alternatives that are often cheaper in the long run than technological investments or infrastructure construction and maintenance10.
- Prospects for potentially stable and sustainable returns for investors combined with positive impacts on ecosystems and local populations.
- Investments that are weakly correlated with traditional asset classes and allow for real geographical diversification.
BENEFIT FROM THE EXPERTISE OF A RECOGNIZED NATURAL CAPITAL EXPERT
- An experienced team of more than 20 investment professionals, accompanied on a daily basis by a sustainable investment research team.
- A strong track record: pioneering nature-based investment solutions, Mirova teams have developed a unique knowledge of this burgeoning asset class.
- An extensive network of international and local partners to identify the most relevant projects.
1Source: “Nature Risk Rising: why the crisis engulfing nature matters for business and the economy”, World Economic Forum, 2020.
2Griscomand al. Natural climate solutions | PNAS (2017)
3Source: Financing Nature: closing the global biodiversity financing gap, 2021, Paulson Institute
4Source: Mirova, 31.12.2023
5 “Nature-based solutions” are defined by IUCN as “actions to protect, sustainably manage and restore ecosystems, and seek to address the challenges of societies related to the environment, biodiversity and human well-being”.
6Source: “State of Finance for Nature”, World Economic Forum & UNEP
7Mirova, previously “Natixis Environment & Infrastructures” managed the first private project financing strategy under the Clean Development Mechanism of the Kyoto Protocol.
8Source: Global Land Outlook 2022, United Nations Convention on Combating Desertification (UNCCD).
9Source: United Nations, 2022
10Source: “Nature-Based Solutions to Fight Climate Change and Reduce Natural Risks,” IUCN.
Récompenses
References to a ranking, prize or label do not anticipate the future results of the latter, or of the fund, or of the manager.
Mirova, an affiliate of Natixis Investment Managers dedicated to sustainable investing, has once again been recognised in the ImpactAssets 50™ (IA 50), an annual review that highlights the impact fund managers to watch.
The Environmental Finance Sustainable Investment Awards 2021 (SIA 2021) awarded sustainable investment pure-player Mirova the "Real assets manager of the year" award for the second year running, for its activities on nature-based solutions and renewable energy infrastructure. Its fifth fund dedicated to financing energy transition infrastructure was also rewarded with the "Renewables fund of the year" award.
For the fifth consecutive year, Mirova and its 100% owned subsidiary Mirova Natural Capital have been recognized for their approach to impact in natural capital investing and made the ImpactAssets 50’s list.
News
Discover the Land Degradation Neutrality Fund 2023 Impact Report
Discover the Sustainable Ocean Fund 2023 Impact Report.
