Forest Investor Club: investing in nature on the way to net zero

Forests are prominent on the COP26 agenda for a good reason: this natural resource can provide 30% of the emission-reductions needed by 2030, but receive only 3% of climate finance.

Deforestation, ecosystems conversion and other land-sector activities not only reinforce climate change but also undermine the biodiversity vital to human health and economic prosperity. Action is essential, but lack of capital is not the problem: financial institutions have struggled to bridge the annual biodiversity funding gap of up to US$250 billion, estimated by the AFD, due to the difficulty of identifying viable investments.

Limited internal capacity to understand climate and nature-aligned finance, and a lack of access to like-minded partners, has also held back progress.

Clubbing together

This is why Lombard Odier is proud to join the Forest Investor Club (FIC), launched at COP26 by the U.S. Department of State. The FIC is a network of public and private financial institutions and other investors that aim to increase the scale, pace and scope of forest and nature-related financing.

The FIC seeks to enable access to a pipeline of investments in these fields, connecting the network with complementary partnerships and solving investment bottlenecks. Investments will span nature restoration and conservation, sustainable agriculture and forestry, as well as green infrastructure.

They will have two goals: to reduce carbon emissions and support biodiversity. Examples include: investing in sustainable forestry operators or processing sites for non-timber products, green bonds or other securities or investment vehicles focused on forests or nature.

The FIC network includes commercial banks, asset managers and owners, institutional investors, development-finance institutions, and multi-lateral and national-development banks.

Joining the FIC is a natural move for Lombard Odier. As a founding member of the Circular Bioeconomy Alliance and the Natural Capital Investment Alliance, among other nature and climate-focused initiatives, we believe that increasing investment in natural capital and the net-zero transition requires simpler access to a greater number of clearly visible opportunities.

Read about our natural capital strategy here.

This document is issued by Lombard Odier Asset Management (Europe) Limited, authorised and regulated by the Financial Conduct Authority (the “FCA”), and entered on the FCA register with registration number 515393.
Lombard Odier Investment Managers (“LOIM”) is a trade name.
This document is provided for information purposes only and does not constitute an offer or a recommendation to purchase or sell any security or service. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful. This material does not contain personalized recommendations or advice and is not intended to substitute any professional advice on investment in financial products. Before entering into any transaction, an investor should consider carefully the suitability of a transaction to his/her particular circumstances and, where necessary, obtain independent professional advice in respect of risks, as well as any legal, regulatory, credit, tax, and accounting consequences. This document is the property of LOIM and is addressed to its recipient exclusively for their personal use. It may not be reproduced (in whole or in part), transmitted, modified, or used for any other purpose without the prior written permission of LOIM. This material contains the opinions of LOIM, as at the date of issue.
Neither this document nor any copy thereof may be sent, taken into, or distributed in the United States of America, any of its territories or possessions or areas subject to its jurisdiction, or to or for the benefit of a United States Person. For this purpose, the term "United States Person" shall mean any citizen, national or resident of the United States of America, partnership organized or existing in any state, territory or possession of the United States of America, a corporation organized under the laws of the United States or of any state, territory or possession thereof, or any estate or trust that is subject to United States Federal income tax regardless of the source of its income.
Source of the figures: Unless otherwise stated, figures are prepared by LOIM.
Although certain information has been obtained from public sources believed to be reliable, without independent verification, we cannot guarantee its accuracy or the completeness of all information available from public sources.
Views and opinions expressed are for informational purposes only and do not constitute a recommendation by LOIM to buy, sell or hold any security. Views and opinions are current as of the date of this presentation and may be subject to change. They should not be construed as investment advice.
No part of this material may be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorised agent of the recipient, without Lombard Odier Asset Management (Europe) Limited prior consent. In the United Kingdom, this material is a marketing material and has been approved by Lombard Odier Asset Management (Europe) Limited  which is authorized and regulated by the FCA. ©2021 Lombard Odier IM. All rights reserved.