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Octopus Investments has launched a natural capital strategy.

The UK investment manager, which invests in real estate, sustainable infrastructure, venture capital and renewable energy, said the new strategy “aims to generate high-integrity carbon removal credits through comprehensive conservation and land management”. 

Octopus will initially focus on the UK, acquiring  land and real assets with conservation potential. It will seek to generate ancillary revenue streams tailored to each project, such as property restoration, biodiversity net gain credits, regenerative agriculture, ecotourism or renewable energy.

The strategy will be led by Alex Godfrey (l), recently appointed as investment director. He joins from Savills, where he was head of natural capital (rural and projects). He has 15 years’ experience in investment banking and environmental consulting.

Octopus senior fund manager Mike Toft 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.”

Octopus Investments said it plans to grow its assets under management to £50 billion ($63 billion) by 2030, from £13 billion ($16 billion) today. In recent years Octopus has launched several funds for institutional investors, including the Octopus Sustainable Infrastructure Fund and the Octopus Affordable Housing Fund.