More than two-thirds (69%) of global investors have engaged in nature investment plans to increase their investments according to a new report from climate and nature advisory firm Pollination.
Pollination’s 54-page report Nature Finance Focus - tracking global trends in nature investment surveyed 557 institutional investors in six major jurisdictions: UK, USA, Australia, France, Singapore and Japan, with 332 respondents at firms managing over $100bn in assets under management. The report reaffirms investor engagement and interest.
Pollination said there is a growing interest in nature’s investment potential and US investors are already some of the most active on nature investment. The report revealed that despite significant politicisation on sustainable and responsible investment in the US market, 87% of engaged investors plan to increase investments in the space, closely followed by Singapore (79%) and Australia (76%).
“The polarised nature of the responses throughout, from motivations and perceptions of risk through to expectations of returns, highlights the preliminary nature of work in the space.”
The company said investors in all regions, however, share the view that some or all nature-related investments can be classified as an asset class (75%), with larger investors more likely to hold this view.
The survey found that many investors are looking for both returns and impact when they make investments in nature but 23% said they were motivated by improving environmental outcomes at first.
Pollination co-founder and CEO Martijn Wilder said, “Investing in the natural world is investing in the resilience of the economy. It is clear that investors across the globe are starting to recognise the potential that nature-related investments have for producing returns as well as reducing systemic risk, alongside protecting and improving the natural environment.
Mr Wilder said, “We need to continue to transform our global economy to avoid further damage and begin to restore nature.”
The report found that the impact of activist pressure ranges across the world. While only 16% of English investors cite activist pressure as a driver, half (50%) of Singaporean investors give the same answer. M