Survey highlights growing interest in nature-related investments

More than two-thirds (69%) of global investors engaged in nature investment plans to increase their investments, according to a new report from climate and nature advisory firm Pollination. The firm said there is growing interest in nature’s investment potential, and the report reaffirms investor engagement and interest. Pollination’s Nature Finance Focus surveyed 557 institutional investors in six key jurisdictions: UK, USA, Australia, France, Singapore and Japan, with 332 respondents at firms managing over $100bn in assets under management. The report reveals that US investors are already some of the most active on nature despite significant politicisation on sustainable and responsible investment in this market, with 87% of engaged investors planning to increase investments in the space, closely followed by Singapore (79%) and Australia (76%). “The polarised nature of the responses throughout, from motivations and perceptions of risk through to expectations of returns, highlights the preliminary nature of work in the space,” said Pollination. “However, investors in all regions share the view that some or all nature-related investments can be classified as an asset class (75%), with larger investors more likely to hold this view.” The survey shows that many investors are looking for both returns and impact when they make investments in nature, but 23% said they were motivated firstly by improving environmental outcomes. Martijn Wilder, co-founder and CEO, Pollination, said: “Investing in the natural world is investing in the resilience of the economy. It’s clear that investors across the globe are starting to recognise the potential that nature-related investments have for producing returns as well as reducing systemic risk, alongside protecting and improving the natural environment.” He added: “But we need much more: a significant and sustained build in capability across capital markets is needed, including skills and human capital, information infrastructure and new models and norms. We need to continue to transform our global economy to avoid further damage and begin to restore nature. This has long been Pollination’s vision, and our findings in this report reinforce our hope and determination to support global capital markets on this journey.” The survey shows that, overall, private equity and alternatives is viewed as the most exposed asset class, but this differs when drilling down into different regions. While PE is still cited as the most exposed asset class in the UK (46%), this is overtaken by property and infrastructure for Singapore (51%) and agriculture and forestry for the US and Australia (49% and 47% respectively). The impact of activist pressure also ranges across the world, according to the survey. While only 16% of English investors cite activist pressure as a driver, half (50%) of Singaporean investors give the same answer. “The TNFD’s final framework marks another step in the journey towards a nature-positive future, one which will be material for companies and investors. It further clarifies the path for investors to integrate nature-related risks and opportunities into their strategies. We need to recognise this as a watershed moment – for both systems-level change, and for the nations and institutions working to transform our relationship with nature,” said Wilder.

Survey highlights growing interest in nature-related investments

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