The scale of private forest land ownership indicates that its managers have significant influence on both the environmental and economic services forests provide. However, the timber investment industry is facing a new set of challenges — challenges that may dictate a turn to a new set of business strategies.
This article is the second of a two-part series focusing on the challenges and opportunities of incorporating conservation finance into traditional investment portfolios. CFN spoke to investment advisors about strategies for overcoming major barriers. Increased interest in impact opens opportunities for greater incorporation of conservation finance into traditional investment portfolios across a variety of scales, from small retail to large institutional.
This two-part article series explores the challenges of and opportunities for incorporating conservation finance into traditional investment portfolios. In Part 1, various current and former investment advisors with deep knowledge of impact finance discuss the challenges of integrating conservation investments into traditional investment portfolios.
In September, The Conservation Fund announced the closing of its $150 million green bond. The environmental nonprofit offered the 10-year notes in order to expand its Working Forest Fund. CFN spoke to Conservation Fund CEO Larry Selzer about how the organization will use bond funds, the experience of offering a bond as a nonprofit, and the significance of the project for the conservation finance field.
Traditionally, conservation efforts raise funding for projects and actions in the hope that those activities will result in desired outcomes. This Toolkit explores Pay-for-success financing, an alternative approach. This model ties funding for conservation to project outcomes, incentivizing the achievement of objectives and shifting risk away from public agencies and conservation organizations that implement on-the-ground work.
The city of Atlanta has new funds for green infrastructure. In January 2019, the city — in partnership with impact investing intermediary firm Quantified Ventures — closed a $14 million environmental impact bond (EIB) for stormwater management in the city’s Proctor Creek watershed.
Impact Capital Managers (ICM), a network of impact-focused venture capital and private equity funds, is out to disprove the notion that investing for impact requires sacrificing financial return. On the contrary, ICM members aim to match or exceed the overall performance of the market, and they believe social and environmental objectives contribute to their success.
The rise of aquaculture may hold promise to mitigate the environmental pressures of overfishing wild populations, and the food scarcity issues resulting from the rising global consumption of fish. However, to achieve these benefits, the aquaculture industry’s growth must be coupled with an increase in sustainable practices.
Less than one percent of United States farms had an organic certification in 2017, according to the United States Department of Agriculture. Due to its environmental and health benefits, organic agriculture is one of the sustainable agriculture methods many farmers are hoping to adopt.
Financial modeling is an emerging application for land trusts. It could make a great difference in their ability to forecast and plan for various future financial scenarios. At this year’s Land Trust Alliance Rally conference during the “Your Future: Financial Modeling for Long-Term Stability” workshop, the Dutchess Land Conservancy of Dutchess County, N.Y., presented a financial model it developed.