French asset manager Mirova has announced the second close of the Climate Fund for Nature at €195 million ($213 mln) with investments from three corporations.
French IT company Capgemini, real estate firm Unibail-Rodamco-Westfield, and flavouring group Mane have invested in the fund, Mirova said in a press release.
The Climate Fund for Nature, initiated by French luxury goods firm Kering with a €300 mln target size, was announced on the sidelines of the COP15 in Montreal in 2022. At the time of launch, it had raised €140 mln from Kering and beauty goods retailer L’Occitane to protect nature with a focus on empowering women.
The commitments from the new investors “confirms a growing interest from major corporations in investing in nature-based solutions, in addition to their decarbonisation trajectories”, said Mirova, a subsidiary of Natixis Investment Managers.
The majority of projects supported by the fund will involve the restoration of carbon sinks through afforestation, reforestation, and mangrove restoration, alongside initiatives in natural regeneration, regenerative agriculture, and agroforestry.
“Mirova will also promote the independence of women in selected projects. The fund is already supporting an ambitious project to protect primary forests in Peru, in partnership with a local NGO and indigenous communities.”
Other projects involve mangrove and land restoration in Latin America, Africa, and South East Asia. The impacts of projects on nature, climate, and people’s livelihoods will be measured, it said.
Gautier Queru, managing director of natural capital at Mirova, said the commitment of the investors was “a positive signal” about the role that large corporations can play in mobilising funding for nature.
Jean Mane, CEO, Group Mane, added that the collaboration aims to support its decarbonisation strategy, validated by the Science Based Targets initiative (SBTi).
“This initiative marks a new step in improving environmental conditions and promoting sustainable growth.”
Funding for nature-based solutions needs to rise to from $200 billion in 2022 to $542 bln in 2030 to meet international climate and biodiversity targets, the UN Environment Programme said in its 2023 State of Finance for Nature report.
Biodiversity-specific funds passed $1.5 bln by the end of 2023, with eight vehicle launches throughout the period despite relative underperformance across the board.
By Thomas Cox – t.cox@carbon-pulse.com
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