NYSE announces the co-launch of a new environmentally friendly asset class

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NEW YORK, Sept. 14 (Reuters) – The New York Stock Exchange announced on Tuesday that it is co-developing a new class of tradable assets based on sustainable companies that own the rights to ecosystem services, such as carbon sequestration , produced by or hybrid lands.

The NYSE, which is owned by Intercontinental Exchange Inc (ICE.N), said “natural asset companies” (NACs) will be listed and traded on its stock exchange, “creating a new market whose assets generate billions of dollars ecosystem services every year. “

Globally, natural assets produce about $ 125 trillion a year in ecosystem services, like water purification and biodiversity, the NYSE said.

“With the introduction of Natural Asset Companies, the NYSE plans to provide investors with an innovative mechanism to financially support the sustainability initiatives they deem essential to our future,” said Stacey Cunningham, president of the NYSE.

Investments focused on environmental, social and governance factors were in demand, with ESG fund assets increasing 12% to $ 2.3 trillion from the end of March to the end of July, according to Morningstar. Read more

The NYSE said it was developing NACs with the Intrinsic Exchange Group (IEG), which pioneered the idea and is working with natural asset owners to form and list NACs to convert natural wealth into financial wealth. .

“This wealth is based on healthy ecosystems and the natural production of vital ecosystem services, rather than on extractive measures, eg mining, timber harvesting, etc.” IEG said on his site.

IEG, along with the Inter-American Development Bank (IDB), is currently working with the government of Costa Rica on forming NAC, and said it is also in talks with other sovereign countries, private landowners and corporations. public.

IEG said it plans to announce its first private sector partnership with a multinational corporation this fall.

The NYSE has said it is a minority investor in IEG, which has also received funding from the IDB, the Rockefeller Foundation and Aberdare Ventures.

(This story has been rebroadcast to change the wording of the quote in paragraph 4 to “… plans to provide” from “… will provide”)

Reporting by John McCrank; edited by Richard Pullin

Our standards: Thomson Reuters Trust Principles.


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