Conservation Finance Network

With support from Conservation International, BHP also integrated forest carbon into its broader climate change strategy, through support for REDD+, the United Nations program for reducing emissions from deforestation and forest degradation. This included development of the Forests Bond, a first-of-its-kind bond issued by the IFC.

As more and more exchange-traded fund (ETF) issuers launch their own ESG products, it's gotten harder for investors to sort the real impact investments from those that make an impact in name only. Enter green bonds. This special category of debt allocates dollars toward specific eco-friendly projects, making it one of the most concrete ways for investors to make an impact with their money.

As the investment community in the United States, particularly within the fields of sustainable, responsible, and impact investing, shows an increasing appetite for investing in sustainable agriculture and food systems across asset classes, a subset of investors is demonstrating growing interest in financing not simply “sustainable” agriculture but agriculture that is deemed explicitly “regenerative.”

Morgan Stanley Wealth Management has created six new “impact portfolios” of publicly traded investment options to reach a wider swath of investors who want to create environmental and social impact alongside financial returns.

A new Southeast Asia forestry fund launched by Australia-based New Forests includes a tranche aimed at impact investors with specific reforestation, biodiversity and community livelihood goals. The David and Lucile Packard Foundation helped negotiate the impact tranche and has approved a $10 million equity investment in the planned $300 million fund.

By linking payments to outcomes, pay-for-success has an opportunity to make capital more efficient, and positively affect social and environmental factors. Pay-for-success fills in gaps in existing funding by forging creative connections to additional beneficiaries who may be incentivized to help pay if they can enjoy the financial and social outcomes.