Investment manager Mirova has invested in a Colombia-based developer of biodiversity credits as part of the final deployment of its Land Degradation Neutrality (LDN) strategy, while at the same time announcing plans to raise $350 million for a new sustainable land management strategy.
The company, affiliated with Natixis Investment Managers, invested $6.5 mln in Terrasos, an early mover in the biodiversity market that generates credits through a series of habitat banks.
In June, the Colombian outfit announced it had sold out all units from one of those habitat banks, Meta.
Mirova also invested $9.3 mln in Koa, a Swiss-Ghanaian B-corp reducing food waste in the cocoa value chain, and $8.5 mln in Pamoja, which is involved in sustainable macadamia nut production in Kenya and Tanzania.
The three investments were the final deployments of fund from the 2017 LDN strategy, for which Mirova raised a total $208 mln from public institutions and private investors.
At the same time, the manager said it will now seek to raise $350 mln for its new sustainable land management strategy to “support agroforestry, sustainable forestry, and regenerative agriculture projects in developing countries, while preserving and restoring nature and the climate”.
“Building on the success of the LDN strategy, which is reaching the end of its roll-out, we are proud to announce plans to launch our second-generation strategy dedicated to sustainable land management,” said Anne-Laurence Roucher, Mirova deputy CEO and head of private equity and natural capital.
“The second vintage will be offered to public bodies and institutional investors keen to combine long-term financial performance with the transition of agricultural and forestry value chains. It fits perfectly with Mirova’s strategic objective to grow its investments in private assets, and in particular natural capital, through our dedicated platform.”
The new strategy is a proposed fund at this stage, though Mirova has not yet sought regulatory approvals for it, the announcement said.
“The second-generation sustainable land use strategy will be structured as a blended finance vehicle, combining public and private capital: the commitment of public funds aims to reduce risk and encourage investment from private investors to mobilise more capital for sustainable land management and the preservation of natural capital,” said Mirova.
By Stian Reklev – stian@carbon-pulse.com
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