A London-headquartered global investment firm this week launched a biodiversity strategy, eyeing four themes in particular that offer investment opportunities while addressing nature loss.

Redwheel, with operations in London, Miami, and Singapore, announced its new strategy on Tuesday.

“The Redwheel biodiversity strategy aims to provide long-term capital growth in a portfolio of global companies whose products and services have the potential to mitigate biodiversity loss,” the company said on its website.

“The team believes that [preservation] of the planet’s biodiversity is a long-term, structural growth opportunity supported by regulatory, governmental, and consumer pressures.”

Sustainable materials, terrestrial ecosystems, aquatic ecosystems, and circularity and waste management have been identified as the four main categories Redwheel will focus on, though it did not provide further detail or a target amount it aims to place under the new strategy.

It becomes the latest financial player to catch interest in emerging nature and biodiversity opportunities, as focus on the issue has grown rapidly after last year’s successful conclusion of the Kunming-Montreal Global Biodiversity Framework.

“Natural ecosystems are under threat from an array of mostly human-made problems such as pollution and overexploitation of resources, exacerbated by a funding gap. Ecosystem services are worth an estimated $125-140 trillion per year and only ~$39 billion of finance currently flows to biodiversity,” said Redwheel.

“This is an unrecognised investment opportunity that the Redwheel Biodiversity Strategy aims to take advantage of.”

Redwheel’s biodiversity team, based in London, will be headed up by portfolio manager Amanda O’Toole, assisted by Sebastien Bidault, both of whom joined the company earlier this year.

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