The annual value of services provided by nature is in the trillions of dollars. Too often, however, traditional financial capital is deployed in way that runs counter to the preservation of natural capital, damaging the long-term sustainability of our environment, as well as the human economy. Seen another way, it can be said that as we deplete the Earth’s natural capital ‘base’, simple economics tell us that the ‘dividend’ or ‘yield’ that it is able to render to society as a whole is also diminished. Alongside this, rising human populations and consumption patterns, are placing increasing pressure on our terrestrial, marine and atmospheric systems.
Althelia Funds is mission driven to design and implement a new model that will reverse this trend- one that works for the benefit of present and future generations of life on Earth. This model aims to address the drivers of deforestation and unsustainable land-use. Through a focus on blended value investments that deliver the highest calibre social, environmental and economic performance, we aim to demonstrate that financial performance can be fully aligned with sound environmental stewardship and social development.
Our diverse portfolio of investments from Africa, South America and Asia will comprise of real assets (certified commodities and agricultural produce) and environmental services (verified emissions reductions and other ecosystem services).
As an expression of its commitment to define excellence in environmental, social and governance standards and safeguards and portfolio performance, Althelia has worked with investors and NGO partners to design a proprietary Environmental, Social and Governance (ESG) policy and management system, incorporating the International Finance Corporation’s Performance Standards on Environmental and Social Sustainability (2012) and the EIB Statement of Environmental and Social Principles and Standards (2009). Forest-based emissions reductions financed by the Fund will also be validated and verified to the Climate Community and Biodiversity (CCB) Standards, using the Gold Level of the Standards for projects delivering smallholder/community-led equitable benefits and exceptional biodiversity benefits, as appropriate.
The first round of subscriptions, which closed in June 2013, totalled in excess of EUR60 million and include leading private and public sector institutions. The Fund is managed by its Luxembourg-based General Partner, Althelia Climate Fund GP s.á.r.l. and advised by its London-based subsidiary Ecosphere Capital Limited. Althelia Funds are managed by Mirova, an affiliate of Natixis IM.
To find out more about how Althelia is working to align the earth’s economy with its ecology, please contact us