Can the UK’s market for trading nature credits deliver ‘biodiversity net gain’? Governments are waking up to the value of natural capital. Without an abundance of water, soil, and biological diversity, businesses and societies can’t function, much less flourish. But implementing the 2022 Kunming-Montreal Global Biodiversity Framework will require trillions of dollars in private financing. Private-sector financing for biodiversity efforts has been stuck at about $13 billion or so annually (for background, see “Biodiversity is the new climate change”). The UK’s Biodiversity Net Gain market, which entered into effect this month, offers a glimpse of one potential source of such financing, climate finance journalist Louie Woodall reports for ImpactAlpha. The policy requires all new developments in England – from housing projects to roads and railways – to deliver at least a 10% gain in biodiversity.
Dealflow: Financial Inclusion
Sorenson Impact backs Redemption’s purchase of Holladay Bank to create a new Black-owned bank. “My father preached the imperative to accelerate the financial inclusion of Black Americans by supporting mission-driven Black banks — something he called ‘a bank-in movement,’” Bernice A. King, the youngest daughter of Martin Luther King Jr., said in announcing an agreement to acquire Holladay Bank and Trust, a state-chartered commercial bank in the affluent Holladay suburb of Salt Lake City. Sorenson Impact Foundation provided a $1 million program-related investment to Redemption Holding Company, the Delaware public benefit corporation formed by King and former White House policy advisor Ashley Bell to acquire Holladay Bank. When completed and pending federal regulatory approval, the transaction will mark the first time that Black investors have purchased a non-minority-owned bank.
Impact Voices: Climate Finance
How three investors are measuring their impact on climate resilience. Creative financing models are being developed to direct more capital to climate adaptation, which faces a financing gap estimated to be at least $200 billion annually. Metrics on adaptation are critical for incentivizing those efforts. But measuring resilience is a far more complicated task than quantifying greenhouse gas mitigation efforts. “The definition of resilience varies by context, sector, and target population,” Ellie Turner of the Impact investing consultancy 60 Decibels writes in a guest post on ImpactAlpha. each with different approaches to measuring resilience and capturing useful metrics across their portfolios.
Agents of Impact: Follow the Talent
Veris Wealth Partners promotes Roraj Pradhananga to co-CIO and Jane Swan to head of advisory services… British International Investment promotes Maria Smith to managing director and chief impact officer and Samir Abhyankar to managing director and head of its financial services group… Mad Agriculture, which finances farmers transitioning to regenerative agriculture, promotes Elizabeth Candelario to chief strategy officer… Silicon Valley Community Foundation appoints Greta Hansen, Santa Clara County’s chief operating officer, to board chair. The foundation also adds David Chun of Equilar and Neythri Futures Fund’s Archana Sathaye as members of the board.
Editor’s note: This guest post is sponsored by Impact Ventures by J&J Foundation, which supports ImpactAlpha’s Investing in Health coverage. In partnership with Impact Ventures, ImpactAlpha is exploring the …