Michelmores advise Natural Capital Research on investment led by Schroders and OSI

Michelmores has advised Natural Capital Research (NCR) on an investment round led by FTSE 100 global asset manager Schroders and Oxford Sciences Innovation.

Founded in 2018, NCR is a data-led science-based organisation which specialises in measuring natural capital assets globally. Using leading modelling and data techniques, NCR enables landowners and corporates to map the natural capital provided by their landholdings. These include assets important for carbon storage, carbon sequestration, soil erosion protection, flood risk management, biodiversity, water quality, and recreation. It also specialises in advising asset owners on how to enhance their natural capital value and providing the tools to report and validate increases in value over time.

NRC launched a leading-edge bespoke science-based tool, NatCap Map, and has delivered a number of high-profile and successful projects for landowners, utility companies, and corporates including Schroders. NCR's services provide scientifically rigorous research which can be used for the development of ESG, biodiversity, connectivity, and net-zero carbon strategies.

The investment will accelerate the development of NCR’s online platform to map natural capital assets globally, with further investment in leading AI and spatial analytics. With the significant growth in the monitoring and measurement particularly of carbon and biodiversity, this platform will become an essential tool for asset owners, asset managers, and providers of capital. It also has the potential to validate to the highest standards, nature-based carbon credits, and the use of natural capital in flood risk management, water quality, and soil improvement.

Professor Kathy Willis, Director, NCR commented:

"Viewing nature as an asset and putting it on the same balance sheet as a company’s other resources is no longer seen as an oddity. Governments, corporations, and individuals across the world are starting to understand the critical importance and value of the ecosystem services provided by their natural capital assets, not least in carbon storage and sequestration.

“The race is now on to determine the location and extent of these important assets, their value, and where and how to enhance them. We are therefore delighted to be working with Schroders and OSI as we embark on our journey to map, model, and enhance natural capital assets across the world. These globally-focused organisations are at the forefront of understanding the huge potential and possibilities of investing in natural capital assets; potential not only for offsetting of carbon and ESG but also for halting global biodiversity loss and restoring some of the most important ecosystems in the world."

Peter Harrison, Group CEO, Schroders commented:

“For too long the focus of companies and the finance industry has been on growth and accounting profits. The failure to properly account for the impact on nature’s capital is of real importance to long-term investors.

Natural Capital Research have the potential to fundamentally change how we value natural capital, and how this changes over time. Their data-led, and science-based approach provides the basis for an exciting partnership.”

The Michelmores team was led by Stephen Morse (Corporate) and Harry Trick (Corporate).