AXA Investment Management and energy giant Engie have acquired minority stakes in a new French company that plans to scale environmentally sound solutions in the forestry and agricultural sectors, they announced yesterday.
The new company, dubbed the Shared Wood Company, aims to develop “sustainable farming and forestry practices” in Africa, Latin America and Europe that either suck carbon out of the air or prevent carbon emissions.
Although they did not disclose how much they had invested in the new company, AXA IM and Engie said they would fund the developed forestry and sustainable land use projects and then acquire the carbon avoidance and removal loans obtained from those projects.
The company will benefit from AXA IM Alts ’investment and project financing capabilities, as well as from Engie’s experience in carbon markets and risk management, the partners said.
Laurent Valeg, co-founder of Shared Wood Company, said nature-based solutions would be crucial to tackling climate change. “Our planet is overheating,” he said. “We need to move from 51 gigatons of equivalent global CO2 greenhouse gas emissions annually to pure zero, and decarbonisation of energy and heavy industry alone will not be enough. Solutions based on nature are a key lever to reverse the trend and achieve the Paris Agreement, which targets and addresses the biodiversity and poverty reduction issues inherent in this mandate. ”
Shared Wood Company (SWC) stressed that all of its carbon removal and nature-based compensation projects will be certified to guarantee benefits for climate, communities and the environment.
Eric Decker, head of AXA IM’s responsible investment group, said forests will play an “important role” in the fight against climate change. “We are excited to expand our efforts today by joining the Shared Wood Company to accelerate funding for biodiversity restoration and to support local communities whose livelihoods depend on forest ecosystems,” he said.
Lawrence Koons, a member of Engie’s executive committee, also welcomed the investment in the enterprise as an opportunity to access “high-quality natural carbon offsets” that could then be used to accelerate its customers ’transition to carbon neutrality.
“By directing carbon funding to conserving and restoring natural ecosystems, we seek to reap significant benefits for the environment and society,” she said.
Want to learn more about how going to zero will affect your business? You can now register for the Net Zero Finance Virtual Summit, which will take place live and online on Tuesday, March 29, and will be available to delegates upon request after the event.
https://www.businessgreen.com/news/4045155/shared-wood-company-engie-axa-investment-management-nature-solutions-venture Shared Wood: Engie and AXA Investment Management support new venture-based enterprise