L&G's $235M Investment to Drive Sustainable Development in Emerging Markets  

Legal & General Increases Nature Conservation Investment by Committing $235 Million in Emerging Markets

London, UK – Leading UK financial services company Legal & General (L&G) has committed an additional $235 million to nature conservation and supporting sustainable development in emerging markets. It forms part of the new Nature and Social Outcomes strategy by L&G responding to meeting global issues such as biodiversity conservation, healthcare, education, and provision of clean water in the emerging markets. Total investment by L&G for nature conservation and sustainability in the emerging markets presently stands at more than $1.1 billion with this fresh investment.

The Nature and Social Outcomes strategy is created to bridge the estimated $4 trillion funding gap required to implement the United Nations Sustainable Development Goals (SDGs). By utilizing innovative financial products such as use-of-proceeds bonds, debt conversion bonds, and outcome bonds, L&G can raise capital to fund essential projects that maintain biodiversity and enhance critical social infrastructure in emerging markets.

Some of the historic projects financed by L&G's new fund include financing nature conservation in various countries. They include $465 million of financing for ocean, forest, and freshwater conservation efforts in Gabon, Ecuador, and Belize. Another $350 million will be used to finance social schemes in Africa and Eastern Europe, and $100 million will be used to finance building infrastructure in emerging economies. The new fund is L&G's first large-scale project under its Nature and Social Outcomes strategy.

One of the flagship programs of the strategy is Ecuador's second debt-for-nature project, which it is undertaking in partnership with the Republic of Ecuador and The Nature Conservancy. The project will protect 4.6 million hectares of forest and 18,000 kilometers of freshwater resources for the local communities and indigenous people.

L&G's investment strategy lies in the twin benefit of such schemes – returns on investment along with sustainable development. Application of new financial instruments is intended to have financial stability, enhanced credit ratings, and better returns to investors while preserving ecosystems and supporting social infrastructure.

The firm is positive that the emerging economies hold great potential for investors to get competitive returns, besides tackling the most pressing environmental and social issues of the day. By investing considerable levels of capital in the markets, L&G hopes to be able to shape sustainable long-term growth as well as good results in the environment and emerging economy societies.

Conclusion

L&G's $235 million commitment is a significant achievement for the contribution of the financial services industry to filling the world gap in finance for sustainability and social development. L&G's pioneering financial instruments and focus on the developing world are increasingly becoming a pioneering force at the intersection of finance, natural preservation, and green infrastructure development. The company's work will be complementary to the UN Sustainable Development Goals and also serve as a model for future investment, which returns economic dividends along with beneficial social and environmental contributions.