The Importance of Natural Capital

Patrimoine has substantial experience working with and investing in Natural Resource companies in gold, copper, coal, uranium as well as oil and gas. From this experience we have fully realised the importance of sustainability and the requisite respect for the environment. Over the last decade, global interest in environmental issues and climate changes has steadily progressed to become headline issues on political agendas. It has become apparent that carbon sequestration is a key variable to reduce the potential global warming and resulting negative effects for life on our planet. This of course must be balanced by energy production to sustain and indeed augment economic growth to raise the standard of living notably in developing countries.

In order to achieve this balance between the need to create economic growth yet preserve the environment so that growth may be sustainable, the International Union for Conservation of Nature has concentrated on Nature-Based Solutions which are defined as ‘actions to protect, sustainably manage and restore natural or modified ecosystems that address societal challenges effectively and adaptively, simultaneously providing human well-being and biodiversity benefits.’

Patrimoine believes that creating Natural Capital investment opportunities create a win/win situation for investors and for our planet. Given the ongoing trend in the value of carbon credits and the projected value from public source of future credits required to achieve the publicly announced desire for carbon neutrality, select projects should offer investors very attractive returns that are also beneficial to our environment. There have been dramatic increases in capital devoted to this area referred to as Environment Sustainable Governance (ESG) but thus far this capital in our opinion has only been allocated to ineffective passive investments rather than actual impact projects.

We subscribe to the United Nations Sustainable Development Group (UNSDG) 17 goals. Specifically, and additionally, our objectives for Natural Capital projects are based on the following values:

  • Preservation and conservation of Natural Capital.
  • Independence.
  • Return and value-optimisation.
  • Network and network effect.
  • Alignment of all stakeholders’ interests.
  • Financial structuring and capital market expertise.
  • Inclusiveness and holism.