Global investment manager Schroders and nature protection organization Conservation International announced today a new partnership aimed at accelerating investment in natural climate solutions in South East Asia, establishing Singapore-based natural capital impact investment manager Akaria Natural Capital.
Natural climate solutions conserve, restore, or improve the use or management of ecosystems while maintaining their capacity to absorb and store carbon from the atmosphere, according to Conservation International, and could account for more than 30% of the action needed to address the climate crisis.
Conservation International Chief Executive Dr M Sanjayan said:
“Nature-based solutions hold exceptional promise, but it will take sustained investment to unleash that potential at scale. This initiative sends a powerful message to the financial services industry. Generating healthy returns, protecting nature, and supporting community development need not be mutually exclusive goals.”
Akaria plans to manage a series of funds, investing in natural climate solutions projects in South East Asia, initially deploying capital towards a range of 15 to 20 high quality projects, aimed at delivering long-term returns alongside positive environmentalEnvironmental criteria consider how a company performs as a steward of nature. benefits, while also targeting positive impacts for local communities.
In addition, the organizations aim to help support the development of a natural capital investment market and contribute to a better understanding of how to allocate capital towards nature.
Akaria will be led by private equity veterans Gary Addison as Chief Executive Officer, and Simon Chadwick as Chief Impact Investment Officer.
Peter Harrison, Group Chief Executive of Schroders, said:
“Large scale investment is needed fast to halt and reverse nature loss. Nature-based solutions should be part of the solution to tackle climate change – and they can bring good returns. But the devil is in the detail. They must be high quality, and they must put local communities and the people who live there at the heart of any action. That’s why we’re working with Conservation International to do this right. Our ambition is high: we want to harness the power of investment to accelerate a nature positive future, by creating opportunities for impact beyond returns.”
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