More than half (56 per cent) of investors are already exploring or deploying capital into nature-related investment opportunities, a status update from the Taskforce on Nature-related Financial Disclosures (TNFD) reveals, says Gill Wadsworth.
Almost three-quarters (74 per cent) of those surveyed expect a significant increase in financing of nature-related opportunities in the next five years.
Wadsworth writes that the finding come as scientists confirm that a ‘super El Niño’ event is now underway, which TNFD says is making capital providers “acutely aware of the perils of living outside of the safe operating space of our planetary boundaries and the consequences for the future financial prospects of the businesses to which they lend, and which they fund and insure”.
David Craig, Co-Chair of TNFD, says: “The market is moving beyond an appreciation of why nature matters to a much deeper understanding of how nature-related dependencies, impacts, risks and opportunities affect business and financial performance.
Nothing’s simple as David Roberts, Head of Fixed Income at Nedgroup Investments, says in this week’s In My Opinion. Recent yield curve moves show that fixed income no longer rewards simple positioning based on forward guidance but needs judgement too, Roberts writes.
“Reading government bond markets is no longer simple. Investors have grown used to central banks doing much of the interpretive work for them, from Mario Draghi’s 2012 pledge to do “whatever it takes” back to the first explicit Federal Reserve rate guidance in the early 2000s.” he says.
“But those days have gone, maybe for ever. Navigating core fixed income now takes genuine skill, judgement and experience of investing through what I would call the ‘old normal’, with the task complicated by policy paths in the US, UK, EU and Japan pulling in different directions rather than moving in sync.”
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Beverly Chandler, Managing Editor, Institutional Asset Manager
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