Natixis' figure of the day: 1st
global fund dedicated to achieving Land Degradation Neutrality
The United Nations Convention to Combat Desertification (UNCCD), through its operational arm - the Global Mechanism – together with Mirova, the responsible investment management company of Natixis group, have signed an agreement to structure the first global fund dedicated to achieving Land Degradation Neutrality - the LDN Fund.
The LDN Fund aims at creating a new investment territory: land rehabilitation and avoided degradation. The LDN Fund will be launched in December 2016.
Every year, we degrade an area about half the size of the UK to sustain our global economy. Land degradation comes with huge environmental, social and financial costs. The LDN Fund intends to reward land management practices that help to avoid the degradation of productive land. Its goal is to promote switching to sustainable land uses and restoring already degraded land.
The benefits of preventing and reversing land degradation are greater than the costs of land rehabilitation. For instance, The Value of Land: Prosperous Lands and Positive Rewards through Sustainable Land Management shows that the adoption of sustainable land management (SLM) practices alone could generate up to US$1.4 trillion in increased production value.
The Global Mechanism and Mirova are joining forces to turn the project into reality, and to create the conditions vital for this investment vehicle to work. A joint project team will start structuring the fund across six interconnected working groups, including the identification of bankable projects across different sectors and geographies.
Mirova, the Responsible Investment division of Natixis Asset Management
Mirova develops a new global approach to responsible investments and creative long-term value-creating solutions. This approach has three aspects: connection between finance and real economy by investing in innovative business models, creation of value by identifying sustainable assets that deliver long-term performance, and finally, responsibility and commitment by being actively involved in the improvement of company, sector and finance practices.