How to deliver green investment products for professional investors

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Queensland Investment Corporation has launched a new natural capital product to leverage one of the investment industry’s largest trends.

How do you build solutions for institutional investors that will deliver diversified risk-adjusted returns into the future in what is feeling like an increasingly uncertain world?

Stockyard Hill wind farm near Ballarat in Victoria will supply more renewable energy to the national electricity grid following a deal with IFM and QIC.In his recent podcast series, my hero Michael Lewis explores the ‘over confidence game’ and relays how it can be intoxicating but destructive. Admitting uncertainty, asking questions with humility and delving deeper is where true insight is borne.At Queensland Investment Corporation , we’ve just developed a new natural capital capability.

But we could also feel the groundswell, both from stakeholders and regulatory bodies, that would propel the financial industry to look further afield and more directly at biodiversity offsets. Secondly - you need to have on the ground expertise. It’s only through this practical experience that you can construct something that will not only withstand the test of time but have the impact you desire.As major investors in one of Australia’s oldest and largest agricultural companies, NAPCo, we have exactly that. NAPCo owns 14 properties across two states as well as Five Founders, the first beef product to be certified carbon neutral by the Australian Federal Government in 2019.

But then you have to have the appetite, and the backers to scale up, as the protection of our ecosystems and the demand for carbon offset needs institutional-scale investment. Our partnership with the Queensland Government’s Land Restoration Fund has been vital in this regard.

 

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