Catalysing private sector investment into Natural Capital: The Sustainable Markets Initiative Natural Capital Investment Alliance

In 2022 at the invitation of His Majesty King Charles III, Pollination Founder Tony O’Sullivan was appointed Chair of the Sustainable Markets Initiative (SMI) Natural Capital Investment Alliance. Convening 15 members from across the finance community, the Alliance aims to promote and demonstrate the opportunity for private capital investments into natural capital as a new and scalable asset class.

Announced in 2021 at the One Planet Summit, the NCIA was formed as a vehicle to deliver on the Sustainable Markets Inititiative Terra Carta’s ambitions. Recognising the need to mobilise investment in Nature-based economic opportunities, to establish a common language on Natural Capital investment and make it mainstream, the NCIA was created by HM King Charles III in his former role as HRH The Prince of Wales, with Climate Asset Management, Lombard Odier and Mirova as founding members.

The Alliance brings together a Taskforce of 15 members including Federated Hermes, Fidelity, Fondaction, Impax Asset Management, Posaidon, SLM, Foresight Group, ASN Bank, 12 Tree, Kilter Rural, Sail Ventures and Schroders, which have committed to developing a collective roadmap to establish natural capital as an asset class and mobilise private capital investment at scale.

Highlighting the crucial role of the NCIA, Tony O’Sullivan, Founder and Chair of Pollination said: “Nature is at a tipping point – historically undervalued, its degradation threatens every aspect of the global economy and our way of life. However, with nature markets valued at more than $7trillion a year, we are in a new era of investing where nature impacts, dependencies and outcomes need to be considered across all types of assets. I am honoured to be working with leaders in our field to accelerate the impact-focused Natural Capital investment solutions needed to restore the world’s natural ecosystems and halt biodiversity loss.”

In coordination with other SMI Taskforces, the NCIA aims to attract members from across the finance community to create scale and synergies between mainstream asset owners and asset managers, underpinned by the following goals:

• Create a central hub for global asset managers to share their knowledge and expertise in sustainable industries
• Operate as a knowledge partner to develop an enabling environment to mobilise private capital into natural capital
• Drive solutions that significantly scale private capital for nature, and provide NCIA with a distinct global profile

Pollination is proud to support and drive forward the agenda of the NCIA. Find out more about the upcoming NCIA events and activities in 2023 at the Sustainable Markets Initiative website. For more information please contact Suzanne Blake at Suzanne.Blake@pollinationgroup.com