A Montreal-based investment management firm has launched one of the first biodiversity-focused funds in Canada, saying it seeks to channel resources towards the preservation of nature.
Lester Asset Management (LAM) announced on Tuesday the establishment of the Lynx Global Biodiversity Fund, designed to mobilise and incentivise investments in listed companies that are committed to protecting biodiversity.
“The objective of the fund is to grow capital by investing in global publicly traded companies that will benefit from powerful long term trends related to halting and reversing nature loss, protecting and improving the environment, promoting sustainability, and addressing related issues such as water and food security,” LAM stated in a press release.
The Lynx Global Biodiversity Fund will target several nature-related investment classes, starting with ecosystem restoration, remediation, assessment, and monitoring. It has not yet disclosed a figure for how much it would like to raise.
The fund will also focus on green infrastructure and pollution control, targeting water and wastewater treatment, waste management, recycling, emission control, and clean technology.
Sustainable products and processes, as well as sustainable agriculture and food systems, are also among the asset categories eyed by the fund. LAM managed over $330 million in total as of 2020.
“The environment is an area we have a deep understanding of, having made strong returns for our clients for over 15 years from investing in water filtration, leak detection, soil remediation, and environmental consulting services as part of our Canadian equity strategy,” said Stephen Takacsy, president and CEO of LAM.
Numerous funds with ‘biodiversity’ in their titles have launched in recent years. However, they have been criticised for usually only enabling investments in large listed companies – those most harmful to nature – rather than smaller private firms who could be more focused on ecology. In addition, few of these funds have disclosed their biodiversity footprints.
LAM is among more than 200 institutional investors participating in Nature Action 100, a global initiative announced during the UN COP15 biodiversity summit in Montreal in 2022, to pressure investees on progress on addressing nature-related impacts.
“Like climate action, investments in nature action will be driven by aggressive targets set at [COP15] to halt and reverse biodiversity loss, and increased financial disclosure by corporations on nature-related impacts, dependencies, and risks,” the company said.
The asset manager is also a signatory to the Principles for Responsible Investments (PRI) and a Taskforce on Nature-related Financial Disclosures (TNFD) forum member.
Biodiversity has climbed the agenda of investment management companies worldwide. Last week, AXA Investment Manager pledged to cast dissenting votes against companies failing to disclose their impacts on nature. In January, asset manager Manulife published its first nature disclosure on its timberland and agriculture business aligned with the TNFD recommendations.
By Giada Ferraglioni – giada@carbon-pulse.com
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