Octopus Investments has launched a new nature-based strategy for carbon removal credits, led by recently appointed investment director Alex Godfrey.

Godfrey, who led rural and projects natural capital at Savills, will head the Octopus Natural Capital Strategy which aims to generate “high-integrity carbon removal credits through comprehensive conservation and land management”.

Octopus said the initial phase of the strategy will centre on the UK. The strategy will target the acquisition of land assets with conservation potential and explore additional revenue streams specific to each project and location.

These potential revenue streams could include property restoration, biodiversity-net-gain credits, regenerative agriculture, ecotourism and renewable energy initiatives.

Mike Toft, senior fund manager at Octopus Investments, said: “Climate change is the biggest challenge of our time and while reducing carbon emissions to reach net-zero targets is key to addressing this challenge, we will not reach this goal by decarbonisation alone. We know that more high-quality carbon credits need to be generated to help offset carbon and accelerate our net zero efforts. 

“We also know that companies want to do the right thing for all stakeholders; the planet, their customers, shareholders and employees. With their own net-zero targets approaching, they too are increasingly realising that offsetting will need to play a critical part in that journey.

“We are aiming to meet this demand through our holistic, nature-based strategy and with Alex now on board with his on the ground conservation experience, we are even better placed to do so.”

Godfrey said: “I have seen over the years how Octopus makes use of its capital. With its entrepreneurial approach and ability to provide innovative solutions to sectors ripe for change, Octopus aims to tackle some of society’s biggest challenges. In the past there has been huge success with solar power, care homes and the energy transition. 

“I’m excited to be part of this next priority area for Octopus with natural capital having similar characteristics to these previous big wins; a specialist area in an underdeveloped part of the market that is expected to grow exponentially.”

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