Finance in love with Life: The Regenerative Investments Hub in Mexico City
Last March, Capital Institute launched its Regenerative Investments Hub in Mexico City at UNDP’s office, with the support of SVX México, BIOFIN México (Finance for Biodiversity, a UNDP initiative) and the Mexican Fund for the Conservation of Nature (FMCN). And since then, the four organizations have been working non-stop to achieve the objective of catalyzing Regenerative Investments in Mexico, and later on for the rest of Latin America. By regenerative investments, we mean nature-based solutions that restore and and develop natural capital, social capital and economic capital. This includes sectors such as fisheries, forestry, agriculture, tourism, landscape management, green infrastructure, water systems, among others.
The Hub’s main tasks are building the narrative for regenerative capitalism in México, as well as mapping the initiatives that could be considered regenerative, due to their impact on the ecosystems and local communities. Capital Institue, SVX MX, BIOFIN MX, FMCN, and Reforestamos formed an alliance called the “Regenerative Investments Consortium ” or Hub to fulfil this purpose.
The first outreach of the Hub was introducing the topic of regenerative capitalism at AMEXCAP’s forum, the largest annual event of Private Equity and investments in Mexico, where John Fullerton, leader of Capital Institute, presented a new way of investing for present and future generations. During this event, a meeting was held with Family Offices from across the country to talk about the examples and applications of Regenerative Investments in their global and local portfolios.
The Hub was also present during REGEN18, a summit in San Francisco convened by Kevin Jones, Holly Dublin and Marc Barasch where leaders of the Regenerative movement shared their work, learnings and co-created some pathways for a world that that works towards our maximum potential, our shared prosperity and uses new paradigms like those suggested by Carol Sanford, Systems Thinking, and Indigenous wisdom. During the summit, SVX.MX together with Ejido Verde facilitated the metrics workshop, gathering insights on how we could use both storytelling and hard facts to measure our progress in several sectors and activities.
REGEN18’s most spoken word was Mycelium, the Regen.Network was launched, the “Kiss the Ground” movie was previewed, and some amazing leaders from Terra Genesis International, Buckminster Fuller Institute, Ejido Verde, Propagate Ventures, Main Street Project, Change Finance, Capital Institute, among other regenerative leaders such as Carol Sanford presented their work and shared their wisdom.
The Consortium’s vision and Hub’s mission was also present during REGENERA, a program of Impact Investment Intelligence that provided 2 Bootcamps for entrepreneurs and angel investors and a Demo Day. During this Bootcamp, entrepreneurs, and investors alike learned about regenerative capitalism, circular economy, alternative financing vehicles and impact measurement. At the end of the Bootcamp, the angel investors had the opportunity to meet the impact entrepreneurs and their projects during the DemoDay at Promotora Social México: CoLab PSM.
The main task that the Consortium undertook during June 2018 was the creation of a State of the Art research focused on the intersection between Nature-based solutions, Climate Change, biodiversity, conservation and impact investing. If the purpose of the Consortium is financing nature-based solutions that restore ecosystems, we first need to define what are the regenerative investments in Mexico, what key factors determine the success of the projects to test the Consortium’s hypothesis: that private capital is a financing alternative to support and scale regenerative enterprises.
So far, members of the Consortium have interviewed more than 33 participants of organizations, ranging from NGO’s to investing funds and government entities. To everyone who participated in the research, we want to thank you with all our hearts for your time and invaluable knowledge!
But that’s not all. The Consortium of Regenerative Investments, through SVX MX, is also supporting Heifer International, on designing the best way to support rural entrepreneurs working to produce honey, free range chickens and sustainable beef . Heifer is working on “Del Campo a la Mesa” to implement an impact investing strategy, as well as evaluate the financial viability of some of their small holder farmers.
As a group, the Consortium is also interested in unlocking a potential opportunities for the adaptation and mitigation of climate change. SVX MX is working with Reforestamos co-designing its program for forestry entrepreneurship that can regenerate forests in Mexico. In the long term, this project has the potential of being a fundamental tool for climate change adaptation and mitigation, due to its focus on making the forests a productive and investable asset and their preservation a productive activity.
So what’s next for the Regenerative Hub in Mexico City? We are about to start a system’s mapping of the participants of the biodiversity and conservation ecosystems as well as the participants we need to get involved in order to catalyze the regenerative investments in Mexico.
It is relevant to emphasize that catalyzing regenerative investments in Mexico could be a proof of concept for the rest of Latin America and is a long-term project that requires a unique kind of radical collaboration and sharing. Therefore, if you are reading this and would like to participate, please reach out!