Going beyond: contributing towards areas of environmental and social need
A key focus of our sustainable strategies – the Sustainable Balanced and Sustainable Growth Funds for our private clients, and the Sustainable Multi-Asset Fund for Charities – is to contribute towards initiatives that provide solutions to environmental and social challenges.
As documented in our latest sustainability and impact reports, the investments in our sustainable flagship funds have collectively estimated to have avoided 348,3061 tonnes of emissions being released into the atmosphere in 2023, which is the equivalent of the carbon absorbed from growing over 5.7 million trees for 10 years1. In addition, the funds have reached over 185,00 people1. However, there are a number of areas of material environmental and social need which are more difficult to finance through investments.
To further the impact of our sustainable strategies, we’ve partnered with three charities to directly support three core underfunded areas:
Conservation of the ocean
We are partnering with 10% for the Ocean, where we aim to support their work to support existing and the creation of Marine Protected Areas (MPA) and continue to raise public awareness of the importance of the oceans in our fight against climate breakdown.
Protecting biodiversity
We are partnering with Fauna & Flora, where we will focus on protecting populations of important species, while ensuring communities can benefit from diversified income streams and reduced human-wildlife conflict.
Ensuring climate justice
We are partnering with Acumen, whose Hardest-to-Reach initiative focuses on addressing the clean energy needs of underserved communities often excluded from the green energy transition.
The level of donations will be based on the quantity of COe2 emissions2 predicted to be generated by Cazenove Capital’s sustainable funds’ investments, split across the three charities. Importantly, all of the costs are covered by Cazenove Capital, and none are passed onto investors.
This means that, as more investors adopt a sustainable approach and the assets in the funds grow, our donations increase, thus financially aligning us with our long-term ambition to reach net zero, as outlined in our Climate Transition Action Plan.
The oceans
10% for the Ocean
The sea is the planet’s largest carbon sink. Oceans have captured 90% of the excess heat generated by emissions to date3. They help to generate around half of the oxygen we need and absorb approximately 25% of all carbon dioxide in the atmosphere4. Despite their importance, they are grossly underfunded with less than 1% of global philanthropic giving going to protect the oceans5.
We have partnered with 10% for the Oceans, where we will fund work to support existing and new Marine Protected Areas (MPA) and raise public awareness of the importance of the oceans in our fight against climate breakdown.
"As the Founder of 10% for the Ocean, I am honoured to collaborate with Cazenove Capital in our shared commitment to safeguarding the health of our planet’s oceans.
To launch our collaboration, we have chosen to focus on the UK, initially the South Arran MPA. With Cazenove Capital’s support, we will globally distribute a film to raise awareness of the critical role the oceans play our fight against climate breakdown.” – Jasper Smith, Founder of Arksen and 10% for the Ocean
Protecting biodiversity
Fauna & Flora
Biodiversity forms the web of life that we depend on for so many things – food, water, medicine, a stable climate and economic growth, among others. Over half of global GDP is dependent on nature and more than one billion people rely on forests for their livelihoods6.
Climate change is the primary driver of biodiversity loss and biodiversity is part of the solution to climate breakdown. Both are interlinked. Despite biodiverse eco-systems being estimated to provide 30% of mitigation solutions, only 2% of international climate financing goes towards restoring biodiversity7.
We have partnered with Fauna & Flora – whose Vice-President is David Attenborough. We will focus on protecting populations of important species, while ensuring communities can benefit from diversified income streams and reduced human-wildlife conflict. Our initial chosen project will focus on restoration of the remaining chimpanzee corridors in Uganda.
“When this project was launched a decade ago, it was, first and foremost, a chimpanzee conservation initiative. Today, whilst chimpanzees remain a flagship, the project’s impact is reaching much further. The area is crucially important in helping to build resilience to the impacts of a changing climate, through the protection and restoration of biodiversity.
Cazenove Capital’s funding will enable us to continue building and expanding this work, achieving positive outcomes for people, nature and the climate.” – Rogers Niwamanya, Fauna & Flora’s Landscape Manager, Albertine Rift, Uganda
Ensuring climate justice
Acumen
Climate justice means finding solutions to the climate crisis that not only reduce emissions or protect the natural world, but that do so in a way which creates a fairer, more just and more equal world in the process.
There is a real risk that, as the developed countries aim to scale clean energy, the global south is left behind. Currently, 77% of people in the world who remain without energy access live in Sub-Saharan Africa – this is up from 30% in 20108. They are estimated to make up 90% of the world’s population without access to electricity by 20309.
We are partnering with Acumen, whose Hardest-to-Reach initiative focuses on addressing the clean energy needs of underserved communities often excluded from the green energy transition. The partnership empowers Acumen to support or invest in enterprises that provide first-time clean energy access to hard-to-reach and left-behind groups.
"The partnership with Cazenove Capital will support Acumen's Hardest-to-Reach energy access initiative, aimed at providing clean energy to 72 million people in underserved areas of Sub-Saharan Africa. Through contributions from partners such as Cazenove Capital, we are able to support companies that bridge the energy access gap, ensuring the clean energy transition is equitable and inclusive, particularly for those most at risk of being left behind." – Head of Acumen's Hardest-to-Reach Development Facility
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References
1 Impact metric data provided, in part by Net Purpose. Data shown reflects the notional aligned impact calculated for the positions held in the fund as at the 31 December 2023, based on the value of assets as at the 31 December 2023. The positive impact is generated by the companies that we invest in and the users of their products and services, like the organisations that have helped improve access to healthcare, finance and education and the people who choose to switch to renewable energy. Investors in the fund are aligned with these impacts by investing in a company’s activities generally but do not finance any activity, product or service that a company may undertake or make available. We use the most up to date underlying impact data available as reported by the companies and fund managers in which we invest to estimate these impact metrics and apportion it according to our holding size. To illustrate the aggregated impact, we translate the impact into more meaningful comparisons using the following conversion ratios: the average UK home uses 2,700KWh of electricity in a year (Source: Ofgem). Where data is not available, we have not included it, with the expectation that our results are conservative. Impact metrics provided, in part by Net Purpose.
2 Carbon dioxide emissions are those stemming from the burning of fossil fuels and the manufacture of cement
3 The ocean – the world’s greatest ally against climate change | United Nations
4 The ocean – the world’s greatest ally against climate change | United Nations
5 Arksen: Founding 10% for The Oceans
6 The business case for nature (worldbank.org)
7 Climate-Biodiversity Convergence_AFD.pdf (unfccc.int)
8 Driving accountability: Access to energy | World Benchmarking Alliance