Skip to main content
Canada’s most-awarded newsroom for a reason
Enjoy unlimited digital access
$1.99
per week
for 24 weeks
Canada’s most-awarded newsroom for a reason
$1.99
per week
for 24 weeks
// //

The New York Stock Exchange said on Tuesday it was co-developing a new tradeable asset class based on sustainable enterprises that hold the rights to ecosystem services, such as carbon sequestration, produced by natural, working, or hybrid lands.

The NYSE, which is owned by Intercontinental Exchange Inc , said “natural asset companies” (NACs) will be listed and traded on its exchange, “creating a new market whose assets generate trillions of dollars in ecosystem services annually.”

Globally, natural assets produce around $125 trillion annually in ecosystem services, like water purification and biodiversity, the NYSE said.

Story continues below advertisement

“With the introduction of Natural Asset Companies, the NYSE plans to provide investors an innovative mechanism to financially support the sustainability initiatives they deem critical to our future,” said NYSE President Stacey Cunningham.

Investments focused on environmental, social and governance factors have been in demand, with the assets of ESG-related funds rising 12% to $2.3 trillion from the end of March to late July, according to Morningstar.

The NYSE said it was developing NACs with the Intrinsic Exchange Group (IEG), which pioneered the idea and works with natural asset owners to form and list NACs to convert natural wealth into financial wealth.

“This wealth is based on healthy ecosystems and nature’s production of vital ecosystem services, rather than on extractive measures, e.g., mining, timber harvest, etc,” IEG said on its website https://www.intrinsicexchange.com.

IEG, with the Inter-American Development Bank (IDB), is currently working with Costa Rica’s government on forming NACs, and said it is also in discussions with other sovereign nations, private landowners, and public companies.

IEG said it expects to announce its first private sector partnership with an unnamed multinational corporation this fall.

The NYSE said it is a minority investor in IEG, which has also received funding from IDB, The Rockefeller Foundation and Aberdare Ventures.

Story continues below advertisement

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies