An institutional investor based in the UK has tendered a £100m peatland restoration mandate to be invested in Europe, including in the UK, via IPE Quest.
According to search QN-2824, peatland should generate income from carbon credits and if possible also produce other benefits such as biodiversity, water quality improvement and floor resilience.
Peatlands are ecosystems that are rich in carbon and play a crucial role in mitigating climate change. They store more carbon per unit area than any other ecosystem on Earth, and are estimated to contain around 30% of the world’s soil carbon.
However, when peatlands are damaged or drained, they can release this stored carbon back into the atmosphere as greenhouse gases (GHG), exacerbating climate change. Peatland restoration involves the re-wetting and re-vegetation of damaged or degraded peatlands, which can help to prevent further carbon loss and promote the recovery of these vital ecosystems, according to the United Nations Environment Programme.
Investment in peatland restoration can have significant environmental benefits. By reducing GHG emissions and improving biodiversity, restored peatlands can help to mitigate climate change and support the transition to a low-carbon economy.
Additionally, restored peatlands can provide economic benefits, such as increased carbon sequestration and opportunities for sustainable land use, such as agriculture or ecotourism, as the latest report by the United Nations Environment Programme on peatlands showed.
However, peatland restoration can be a challenging and costly process, particularly in areas that have been heavily degraded or damaged. As such, there is a need for increased investment and financing mechanisms to support peatland restoration initiatives around the world. By supporting the restoration of these vital ecosystems, investors can help to mitigate climate change and promote sustainable land use practices.
The deadline for this mandate has been set for 28 April, 5pm UK time.
Swiss pension fund seeks strategic adviser
A Swiss pension fund is seeking to appoint an external startegic adviser for risk management related to equity market drawdowns to give advice on how to efficiently optimise the fund’s current setup.
As per IPE Quest’s notice IN-2822, the current pension fund’s setup is measuring market phases. The market phase identification system is to change equity exposure when higher risk is measured in current equity markets.
“We are shifting equity market exposure rule based over different risk regimes. Our equity exposure varies between 20%-27% (dependent of the current signal),” the notice stated.
The aim is to reduce significant drawdowns. The fund has defined equity tail risk as events that are higher than one standard deviation of its listed equity exposure. The rule based approach should reduce significant drawdowns by 2% for the entire portfolio, it added.
Following a selection process, the pension fund will propose three portfolio pillars that can be used (including the current setup, which is allowed to be modified), according to the notice.
The deadline for this mandate is 21 April, 5pm UK time.
Corporate green bonds mandate for €135m
Separately, a pension fund based in the Netherlands is seeking to invest €135m in active euro zone corporate green bonds, according to search QN-2823 on IPE Quest.
Participating managers should be able to show a minimum track record of three years (five years is preferred), with a minimum €500m of assets under management (AUM) for the asset class (€5bn for total AUM).
The mandate will follow the Bloomberg MSCI Euro Corporate Green Bond Index as benchmark, the tender notice added.
The deadline for this mandate is 5 May, 5pm UK time.
The IPE news team is unable to answer any further questions about IPE Quest, Discovery, or Innovation tender notices to protect the interests of clients conducting the search. To obtain information directly from IPE Quest, please contact Jayna Vishram on +44 (0) 20 3465 9330 or email jayna.vishram@ipe-quest.com. Follow IPE Quest on LinkedIn.
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