SUSTAINABILITY

Lion’s Head has been at the forefront of thinking about investment for sustainability. We take a broad definition of environmental sustainability – overlapping with agriculture and renewable energy investment – but we think that there are specific opportunities around household energy access, smallholder agriculture and water consumption. Our projects range from direct support to businesses to helping design programs and financial products that support climate mitigation, adaptation and resilience.

Our recent activities include:

Lion’s Head advised the Carbon Finance Unit at the World Bank on thinking about new ways for two of its flagship funds to raise money from and/or engage with the private sector. We analyzed the historic strategy that the Bank had used as well as the change in the broader carbon finance context; we took this analysis, plus feedback from corporates, to design a new strategy that shifted to a greater degree of co-investment and coordination with existing investments in land use and supply chains. This strategic shift helped to unlock $280m in donor funding for the BioCarbon Fund and $240m for the Forest Carbon Partnership Facility.

Lion’s Head supported the UK’s Department for International Development (DfID) to consider how the UK government can best leverage commercial fund management best practices and commercial fund managers in deploying capital to low carbon projects. Lion’s Head conducted a broad review of different low carbon fund structures. Our research targeted fund management contracting, including fees; governance policies and structures; and operational efficiency – e.g. how the fund did what it was designed to do. This work ranged from desk research into fund documents and performance, interviews with donors, fund managers and recipients, and document/presentation preparation.

To see a list of our experience across sectors, see here.