California State Teachers’ Retirement System (CalSTRS) has backed Just Climate, a climate-focused business created by Generation Investment Management.
Just Climate said it raised $175m (€160m) for its Natural Climate Solutions strategy, with anchor investments from CalSTRS and Microsoft’s Climate Innovation Fund.
The latest funding round comes after the two investors participated in Just Climate’s Industrial Climate Solutions strategy in 2023.
Natural Climate Solutions, which has a global investment strategy, made its initial investment by leading a Series B funding round for NatureMetrics, a company specialising in environmental DNA-based biodiversity monitoring.
Clara Barby, senior partner at Just Climate, said: “The climate crisis is accelerating and forcing an energy and land transition, which will succeed if it is a just transition. Climate-led investing is the practice of scaling solutions that can best enable this transition and is fast becoming a capital allocation imperative for investors around the world — as exemplified by our anchor partners.
“We believe, with the right growth capital and business-building support, the picks and shovels that will enable the land transition have the potential to scale rapidly and generate attractive financial returns through highest positive climate impact.”
Eduardo Mufarej, co-CIO of Just Climate, said: “We believe a rapid land transition, with the potential to be as profound as the energy transition, is coming. Our strategy focuses on directing and scaling institutional capital to solutions that can help to transform food systems and drive the expansion of the ecosystem restoration sector.
“This commitment is reflected in the investments we aim to make, targeting innovative technologies in specific sectors. The importance of nature is rising up the global agenda, and businesses are at commercial tipping points, creating investment opportunities in the coming years. Nature and the land transition are critical and will be a central focus at COP30 in Brazil later this year.”
Kirsty Jenkinson, investment director at CalSTRS, said: “This investment with Just Climate is aligned with our long-term outlook and mission to provide a secure retirement for California’s public educators and their beneficiaries. We believe investment opportunities related to the land transition that require specialist expertise create value.
“Our partnership with Just Climate aims to accelerate the land transition and contribute to a more sustainable global economy while generating attractive investment returns for our members.”
Erika Basham, director at Microsoft’s Climate Innovation Fund, said: “Achieving our ambition of being carbon negative by 2030 requires both reducing emissions and scaling high-quality carbon removals.
“Our work with Just Climate and participation in the Just Climate Nature Alliance reflect our commitment to advancing nature-based solutions that drive high-integrity carbon removals, build resilient supply chains and protect biodiversity.”
Dimple Patel, CEO of NatureMetrics, said: “Recent geopolitical events remind us just how much we rely on visionary organisations prepared to make bold investments in change for good.
“Just Climate not only understand the urgent need to invest now to drive systems change but also has the reach and ability to convene the diverse stakeholders required to turn ambition into action.”
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