The session, entitled “The Next Frontier: Investing in a Nature Positive Economy” focused on the role of nature-based solutions in realising the transition, was part of Climate Week NYC. Aaron and Olga discussed the risks and opportunities to investing in nature-based companies, and the role of carbon pricing as one part of a broader set of regulatory measures, for which climate-focused investors are increasingly advocating.
Respect for the Planet is a key pillar of the Church Commissioners’ Responsible Investment strategy. The Church Commissioners are actively developing their understanding of the risk of biodiversity loss and associated negative nature impacts in their existing portfolio, before considering how as an investment fund it can enhance and accelerate nature positive investments across the portfolio. An area the Commissioners particularly see as having potential to drive positive change is within the real assets portfolio.
Olga Hancock, Senior Engagement Analyst, Church Commissioners for England, said:
“Financial Institutions are increasing concerned about climate risk and opportunities, and land use and deforestation play a critical part in the climate puzzle. The Church Commissioners are active members of the Investor Policy Dialogue on Deforestation (IPDD), co-chairing the Indonesia workstream. The IPDD seeks to ensure long-term financial sustainability of investments in the countries in which members are invested by promoting sustainable land use and forest governance to reduce financial risks arising from deforestation and land degradation.”
Aaron Pinnock, Impact Investment Analyst, added:
”One of the most effective ways to meet the goals of the Paris Agreement and to better manage the financial risks of nature loss and climate change is for policy makers to adopt a transparent and appropriate price of carbon. Without this it will become increasingly difficult for financial actors to make appropriate long-term decisions.’
The series was co-hosted by the City of London Corporation and the Green Finance Institute in partnership with the World Economic Forum.