BourratDehinInc

Three of the five most effective strategies for reducing emissions are nature-based solutions (NbS): ecosystem protection, restoration and improved management of farmlands.

To limit climate change to below 1.5°C, halt biodiversity Biodiversity loss and achieve land degradation neutrality, US$ 384 billion and US$ 484 billion will be needed respectively by 2025 and 2030.

In 2022, US$154 billion have been invested globally towards NbS. Out of this amount, only 17% (US$26 billion) came from the private sector.

Companies, financial institutions and investors are finally starting to take a good measure of how material these risks are for them now and in the foreseeable future. More interestingly, they are also finding out that their capital allocation decisions carry significant impact to the natural environment, the so-called double materiality principle Double materiality principle .

Some also see climate change and biodiversity loss as real business opportunities as carbon and biodiversity markets are building up around the world leading to a much stronger business case for NbS investments.

In order to mobilize capital from the private sector, bridges need to be set between the public sector (blended finance), financial institutions (capital investments), regulators and supervisors (incentivization) as well as the scientific community (research and know-how).

Projects also need to respect a well-balanced tripartite equation, ie true measurable impact Impact Scale, depth, duration, volatility… profitability over different time horizons and risk diversification and mitigation.

Yet, the big issue with investing in NbS remains the pipe. The need for investment is significant but not easily manageable as the number of potential projects is very high with, often, very low ticket sizes.

By applying a top-down approach starting with well-articulated and comprehensive storyline Storyline To generate measurable impact, the objectives of an investment should have robust foundations. This is why, the funds we support boast a well purposed storyline (narrative, impact sectors, technologies, geographies…) put together with selected field experts, researchers, financial people. Each storyline is also supported by much data to identify what needs to change on the ground and how, a realistic assessment of its potential impact and its anticipated levels of risk and return as well as social and economic benefits for the local communities. integrating multi components of end-to-end value chains, we can address that fundamental issue.

At BDI, we address this development and implementation of storylines via the collaboration we establish with carefully selected partners boasting proven experience in the field, with data, technology and local presence.

We also interface with regulators and supervisors to ensure that our proposed concepts meet the regulatory expectations while shaping the vision for upgraded ones.

Storylines provide a real raison d’être to our investment programs and somehow ensure that all investors are “in” for the same reasons

The clarity of the investment purpose and well articulated straightforward KPIs also warrant a more transparent monitoring of the impact of the technologies and processes implemented on the ground over the duration of the financing.

It enables a proper selection of investees, with a homogeneous due diligence process, baseline definition and monitoring.

Finally, storylines also allow for a more transparent communication with auditors, regulators and clients as, from the start, they are designed to generate a specific and significant impact across the globe.

Let’s put an end to greenwashing Greenwashing Behaviour or activities that make people believe that a company is doing more to protect the environment than it really is. and drive private investments towards climate and nature impacts that really matter within pre-defined profitability and risk appetite.