An environmental impact platform and a payments network have launched a fund for investing in projects that contribute to reaching global biodiversity targets.
The Nature Transformation Fund, which has not disclosed a target size, will be managed by Milkywire, with Klarna remaining as a founding partner, the two Swedish companies announced Friday.
The portfolio will be open to all companies looking to support initiatives benefiting both people and biodiversity, aligned with the Kunming-Montreal Global Biodiversity Framework’s ambition to preserve at least 30% of land and sea by 2030.
“Tackling biodiversity comes with a myriad of complexities, and picking the right projects is extremely important to ensure that both the people and the planet win,” said Jill Raval, Milkywire’s nature transformation fund manager.
“Our fund approach allows companies to address global biodiversity challenges in a holistic way, ranging from hands-on restoration to advocacy. We are looking forward to amplifying our impact through collective action.”
Biodiversity-specific funds surpassed $1.5 billion globally by the end of 2023, with eight vehicle launches throughout the period despite relative underperformance across the board.
Klarna and Milkywire first partnered in 2021 for the Give One initiative, through which Klarna committed to allocating 1% of its latest $1 bln funding round to initiatives supporting conservation, mitigation, and restoration efforts for climate and biodiversity.
Klarna has so far paid out $13.6 million towards 53 environmental projects, including enhancing the protection of 700,000 hectares of forest in the Amazon, the creation of 195 ha of wildflower-rich grasslands in the UK, and the establishment of three new marine protected areas, also in the UK.
“Our global economy is embedded in nature, so all companies must help close the biodiversity funding gap,” said Alexander Farsan, Klarna’s head of climate and environment.
“We have spent three years investing directly in on-the-ground projects and building extensive knowledge in how to select and manage projects for maximum return on investment. With this new fund, we are making this expertise available to all tech and finance companies looking for a ‘plug-and-play’ route to investing directly in on-the-ground biodiversity projects,” Farsan added.
In 2023, Milkywire partnered with the UN Environment Programme (UNEP) to mobilise the global gaming industry to protect nature in an event focusing on wildlife in the Amazon, the Himalayas, and the Western Indian Ocean.
By Giada Ferraglioni – giada@carbon-pulse.com
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