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 led a cross-industry effort to increase transparency in the Green Bond market. On behalf of the Rockefeller Foundation, LHGP is developing the Carbon Yield, a Green Bond GHG impact metric with technical assistance from South Pole Group and buy-side input from Affirmative Investment Management. The metric was launched in June 2017 as an open-source methodology, available to the whole market. The aim of the metric is to quantify the climate change mitigation impact of Green Bonds in a simple and easy to use way. The intended outcomes of the project are broad uptake of the metric by the market resulting in increased flow of funds from investors, increased visibility of EM issuances and potentially the occurrence of price enhancement for those bonds with a higher impact.

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.

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