Mutual Fund with Mutual Benefit

Cool Hive Daily Market Monday
The Livelihoods Carbon Mutual Fund aims to avert the effects of 25 million tons of carbon dioxide emissions.

This impact investment fund launched in December of 2017 aimes to have considerable impact with in twelve months. Linking global sustainable economic development to emissions reduction the fund aims to reach about an $118 m in investment for ecosystem restoration, agroforestry and renewable energy projects Africa, Asia and Latin America by end 2018. If successful this will avoid or sequester up to 25 million tons of CO2 over 20 years.
How this works according to it’s cofounders is that “Companies invest in the fund, which finances projects that improve the lives of rural communities, while mitigating climate change.” What’s unique about this mutual fund (which divides risk among several investors) is that dividends are paid out in carbon credits, not cash. With $65m already ivested by only seven companies, Credit Agricole, Danone, perfume and flavor company Firmenich, Hermès, Michelin, SAP, Schneider Electric and travel agency Voyageurs du Monde, co-founder of the Livelihood fund Bernard Giraud, hopes to inspire many more companies to invest in his fund.

The Livelihood Fund’s carbon credits are certified by the Gold Standard, established by the World Wildlife Foundation in 2003. These credits guarantee a benchmark of climate impact with its projects while also having the added benefit of improving the lives of communities who have been compromised by the ravages of climate change. Each of the fund’s projects have multiple benefits. Their first funded project helped women plant 16 million trees in India’s Sundarbans national park near Kolkata. The women were trained by the NGO NEWS to manage the nurseries that strengthen dikes and embankments that also protect villages and arable lands from flooding. Supporting girls education and economic development was #6 and #62 in importance in Paul Hawken’s Drawdown study of how to reduce Carbon Dioxide so developing equity in women’s cooperatives has far reaching cascading benefits.

Making investments that provide an ecosystem of value will be the biggest business trend of the coming years so if you care about the success of markets and returns on your investment you should also care about the environment.

Article Daisy Carlson Photo Avik Saha Link to the Livelihood Fund