DNV Ventures: Partnering with NatureAlpha to make nature & biodiversity a central part of investment decisions

DNV Ventures is pleased to announce our investment in NatureAlpha, a leader in biodiversity- and nature analytics for the financial industry. This partnership supports DNV’s commitment to solutions safeguarding the environment, and NatureAlpha’s vision for a nature-aligned global economy.

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Biodiversity, the variety of life on earth, is fundamental to the health of our planet and the well-being of humanity. Regrettably, the health of nature ecosystems is deteriorating at an ever-rapid pace. Alarming statistics reveal wildlife declining by almost 70% since 1970 (WWF). Moreover, 1 million species playing crucial roles in the structure of ecosystems are currently identified as under threat of extinction (UN & IPBES).

The World Economic Forum lists biodiversity loss and ecosystem collapse as third biggest threat humanity will face in the next 10 years. With potentially negative effects on food security, livelihoods, health, and overall quality of life, there is a growing interest in the private sector to better understand nature-related issues and transition the global economy towards nature-positive business models.

Policy- and economic collaboration required to restore and protect nature

Multiple factors like climate change, pollution, and overexploitation contribute to biodiversity loss. However, transformative shifts in the global economy, driven by policy changes, can counter this trend. 

As discussed in the DNV whitepaper Navigating the Biodiversity Disclosure Landscape, there are signs of global progress with 195 countries adopting the Kunming-Montreal Global Biodiversity Framework (GBF) at COP 15 in 2022, aiming to halt and reverse nature loss by 2030 and achieve harmony with nature by 2050.

The EU’s Corporate Sustainability Reporting Directive (CSRD) introduced mandatory biodiversity standards (ESRS) for large corporations starting in 2024. Additionally, many companies are voluntarily adopting the Taskforce on Nature-related Financial Disclosures (TNFD) framework, highlighting the growing recognition of biodiversity’s importance in business and finance.

With these frameworks, investors are increasingly directing capital towards companies and projects that minimize biodiversity impacts. To align their investments, investors need data and analytics.

That is where NatureAlpha plays a vital role. 

NatureAlpha, integrating nature data in investment decisions

Founded in London in 2021, NatureAlpha uses AI to turn nature-data into actionable insights. This enables decision-makers to rely on nature-related considerations when investing in various asset classes, including stocks, bonds, private assets, and infrastructure projects.

Moreover, asset managers can utilize the data and insights to offer responsible, risk-adjusted strategies and portfolio`s that focus on companies managing natural worlds risks. Managers of infrastructure projects can perform biodiversity assessments with higher quality and in a faster manner (i.e. renewable power plants` impact on nature in the area it is being built). 

NatureAlpha’s metrics support TNFD, helping investment managers and corporations align with global sustainability reporting standards, manage exposure to nature-related risks, and find opportunities for investments with positive biodiversity impacts.

The NatureAlpha team’s success in signing renowned financial institutions as customers, demonstrates the transformative thinking in capital markets coupled with growing demand for nature-analytics.

The integration of nature-related risks into financial decision-making is no longer optional, NatureAlpha’s data and metrics provide the clarity and precision needed to address these challenges effectively. Coupled with DNV’s deep expertise, this partnership is poised to set a new standard for how natural world risks are considered and managed, both in the financial sector and across industry sectors, says Michele Thiami, Head of Ventures Scaling and Partnerships in NatureAlpha.

Positioned for growth by completing Seed investment

DNV Ventures is proud and happy to partner with Vian, Nick, and the talented NatureAlpha team on their Seed financing. By joining existing investor FNZ, and the other participants, this funding will help NatureAlpha strenghten its organization, advance its technology and products, and boost sales and partnerships.

Partnering with DNV Ventures is a transformative step in our mission to redefine how nature related risks are measured and managed. Their expertise and investment permit us to expand our platform`s capabilities and provide financial and corporate decision-makers with the precise tools needed to navigate the evolving landscape, says Nick Hough-Robbins, CEO of NatureAlpha

In this partnership, DNV will contribute with its expertise in climate-related analysis, aiming to equip the world’s largest firms with the tools and insights needed to achieve nature-aligned goals.

We are very pleased to become an investor in NatureAlpha. This funding round is an important milestone and provides the company with the financial foundation to scale what already is a very promising product. It will be great to join distinguished financial organizations FNZ in the active ownership. DNV look forward to collaborating with the team and stakeholders to further advance the important mission, says Kaare Helle, Venture Director in DNV Venture.