NATURAL ASSET OWNERS

  • Private landowners

  • Farmers and ranchers

  • Corporations

  • Governments

  • Private landowners

  • Farmers and ranchers

  • Corporations

  • Governments

A VOLUNTARY, MARKET-BASED SOLUTION

Those who own land where nature thrives, food grows, or livestock graze often feel a deep connection and sense of place. Many regard themselves as stewards of natural assets to be nurtured, sustained, and passed along to future generations. The economics of such stewardship, however, are not always easy to manage. It takes capital for a rancher or farmer to adopt regenerative approaches that restore soil health and produce more nutritious crops.

Stewards of natural capital have had few options to fund budgets for conservation, land restoration, or improving the quality of ecosystem services to support corporate supply chain resilience. Indigenous peoples, committed to the integrity of ancestral lands and ways of life, face similar constraints. Burdens of debt and declining profitability can derail a farmer or rancher’s desire to keep the cherished land in the family.

NACs offer a compelling value proposition for owners of land or marine areas who want to manage the natural assets in their care sustainably. NACs can be an effective way to:

  • Retain property ownership and authority on land management practices as part of a voluntary, market-based solution for willing landowners

  • Generate capital to finance the protection of natural assets, restore ecosystems, improve biodiversity, and build resilience to environmental threats

  • Provide resources to transition conventional agricultural production practices to regenerative methods

  • Reward landowners, indigenous peoples, and communities through NAC equity ownership, job creation, and other ongoing benefits

  • Support long-term commitments to climate and biodiversity goals

  • Benefit financially from the growth of the natural asset’s value

  • Improve ecosystem services that increase benefits to people and wildlife

HOW IEG WORKS WITH NATURAL ASSET OWNERS

IEG works with natural asset owners at every stage of the NAC development process, from site identification to capital raising. The first stage involves assessing the feasibility of a NAC and defining the project scope. This includes a review of the legal and regulatory environment, a preliminary valuation of ecosystem services, and stakeholder mapping and analysis. IEG brings its project-design and business strategy expertise to further develop a NAC opportunity and, if needed, will coordinate with the NAC’s placement agent or broker to secure the necessary financing. IEG’s consulting role also involves advising on developing the NAC charter, bylaws, management team, and board of directors. At the capital raising stage, IEG coordinates on strategy; collaborates with placement agents, brokers, and underwriters to secure the necessary financing; and works with legal counsel and auditors.

PROCESS: ESTABLISHING A NAC

IDENTIFY A SITE

Identify a site with substantial ecosystem services or potential for ecosystem restoration

FORM NAC

Form NAC as a new corporation and license rights to ecosystem services

EXECUTE TRADITIONAL COMPANY SET-UP

Select management team and board, formalize governance structure, and develop business plan

GENERATE CAPITAL

Generate capital to fund the conservation, restoration, and growth of the natural assets

SIGNAL THE VALUE OF NATURE

The NAC’s share price signals the value of nature; benefits are shared with local communities

NAC PROJECT SELECTION CRITERIA

When evaluating potential NAC projects, IEG evaluates opportunities for suitability along a number of key dimensions, including:

Natural asset and ecosystem service value

Natural asset and ecosystem service value

Financial and political capacity

Financial and political capacity

Investor appeal

Legal and regulatory viability

Legal and regulatory viability

Investor appeal

NAC PROJECT SELECTION CRITERIA

When evaluating potential NAC projects, IEG evaluates opportunities for suitability along a number of key dimensions, including:

Natural asset and ecosystem service value

Natural asset and ecosystem service value

Financial and political capacity

Financial and political capacity

Investor appeal

Legal and regulatory viability

Legal and regulatory viability

Investor appeal

NAC PROJECT SELECTION CRITERIA

When evaluating potential NAC projects, IEG evaluates opportunities for suitability along a number of key dimensions, including:

Natural asset and ecosystem service value

Natural Asset and Ecosystem Service Value

Financial and political capacity

Financial and political capacity

Legal and regulatory viability

Legal and regulatory viability

Investor appeal

Investor appeal