Natural Capital Investment Alliance
About the NCIA
The Natural Capital Investment Alliance (the NCIA) has been formed in recognition of the need to mobilise investment in Nature-based economic opportunities.
The NCIA was created by HRH The Prince of Wales through his Sustainable Markets Initiative, with Climate Asset Management, Lombard Odier and Mirova as founding members.
In 2021, at the One Planet Summit, HRH The Prince of Wales announced the NCIA as a vehicle to delivering on the Terra Carta's ambitions. At COP26, the NCIA announced a commitment to mobilise at least USD 10 Billion in investment into Natural Capital assets in 2022, with an ambition to scale that investment in the coming years.
The NCIA aims to attract members from the finance community to create scale and synergies between mainstream asset owners and asset managers, underpinned by the following goals:
To serve as a central hub for global corporations and financial institutions seeking to scale-up their investments into Natural Capital, in support of biodiversity restoration, including through high integrity carbon offsets.
To share investment knowledge and expertise on investing in Natural Capital, underpinned by strong principles.
To showcase and demonstrate scalability of appropriate investment vehicles and the multiple opportunities across asset classes.
Members of the Alliance commit to the following principles, which are aligned with the principles of the Terra Carta:
1. Support InnovationMembers of the Alliance target the development of and investment in new and innovative investment solutions specifically focused on resolving Natural Capital challenges. The products can span the full range of asset classes.
2. Integration within investment decision-makingNatural Capital concepts should be treated as a key or equivalent metric to traditional investment factors in capital allocation decisions.
3. ScalabilitySolutions should prioritise commercial and market scale, translating into larger positive outcomes.
4. Explore benchmarks and measurementsMembers should explore benchmarking and the measurement of the positive outcomes created (subject to specific asset classes), while demonstrating best practice in developing, implementing and promoting measurements.
5. Break down barriers and allow accessInvestment propositions should be widely available to capital owners and allocators.
6. Sustainable investment at scale – client educationMembers should engage in communicating to and educating clients about the objectives and achievements of the relevant investments or products.
7. Incentivise investment and the integration of Natural Capital in existing asset classesMembers should aim to develop new investment solutions and products that allow the integration of Natural Capital considerations into the assessment of existing asset classes.
8. Encourage disclosureShareholders should be active, with continued efforts focused on enhanced monitoring and disclosure of performance against Natural Capital-related objectives and impact.
The former Prince of Wales
Summing up the investment prospects characterised by the transition to a circular economy, His Royal Highness The Prince of Wales said:
'Looking forward, new employment opportunities, entire new industries and markets rooted in sustainability are within our grasp, with the potential for unprecedented economic opportunity growth'