Natural capital assets play a major role in providing an expanding world population with food, fiber and shelter, which support long-term demand for agricultural and forest products.
Engagement
/in-'gāj-mənt/ noun
A dialogue between an investor and an issuer focused on positively influencing corporate behavior on a variety of topics, including ESG issues.
CASE STUDY
Expanding knowledge of the benefits of regenerative agriculture
In Stołąż in northeast Poland, our team launched a trial project to design a Measurement, Reporting and Verification (MRV) system for soil health and soil organic carbon, with a focus on enhancing regenerative agricultural practices and overall asset performance.
In 2022, two new tenants joined the project. Both demonstrated a strong commitment to implementing Soil Capital’s recommendations, including establishment of cover crops, executing crop rotation, and practicing strip tillage. Additionally, they plan to convert the farm to organic production while integrating livestock into the farming system.
One of the tenants operates a suckler cow herd, which last autumn grazed clover that was later over-sown for a crop of winter wheat. Results from the Soil Capital trial at Stołąż will be shared through Nuveen Natural Capital’s quarterly Rural Thoughts newsletter.
Source: Nuveen Natural Capital Sustainability Report, 2023
Glossary: E-F
Emissions avoided
Positive, intentional differences in emissions reported year over year as a means of accelerating decarbonization.
Engagement
A dialogue between an investor and an issuer focused on positively influencing corporate behavior on a variety of topics, including ESG issues.
Environmental, social and governance (ESG)
Typically refers to the factors and issues investors consider regarding a firm’s sustainable business practices.
► Environmental: A responsible investing factor dealing with climate impact, energy consumption, biodiversity, waste management and natural resource use.
Example: Waste management
Innovative packaging can reduce waste while also driving down material and transport costs.
► Social: A responsible investing factor dealing with employee engagement and development, labor relations, human rights practice, product safety and consumer protection.
Example: Health and safety
Effective health and safety programs can mitigate unexpected costs caused by workplace injuries, e.g., medical expenses, workplace disruption, productivity loss
► Governance: A responsible investing factor dealing with management structure, board accountability and independence, executive compensation, audits and internal controls and shareholder rights.
Example: Board diversity
A wide range of competencies, knowledge, and perspectives can lead to better decision-making and more effective corporate governance.
ESG integration
Considering material ESG factors within the investment decision making process.
EU taxonomy
Classification system established to clarify which investments are environmentally sustainable, with the goal of allowing companies to share a common definition of economic activities that can be considered environmentally sustainable.
Source: europa.eu
