Legal & General Launches $235 Million Nature Strategy for Emerging Markets
Legal & General launched a $235 million (£183 million) Nature and Social Outcomes strategy to fund conservation and sustainable development in emerging markets. The initiative channels institutional capital toward biodiversity and social infrastructure in developing economies, a category that includes Indian markets.
UK-based Legal & General (L&G) launched a $235 million (£183 million) Nature and Social Outcomes strategy directing capital toward habitat and biodiversity conservation, plus infrastructure for education, healthcare and clean water access in emerging markets. The strategy uses credit-enhanced financing including use-of-proceeds bonds, debt conversion bonds and outcome-based bonds. The commitment adds to L&G's existing emerging-market sustainable development investments, which now exceed $1.1 billion (£890 million). Its first investment, completed December 2024, backed Ecuador's second debt conversion for nature.
The strategy targets emerging-market communities and ecosystems, with capital flowing to forestry, freshwater conservation and social infrastructure projects. Defined contribution (DC) pension members gain access to a fast-growing segment of global debt markets through the vehicle. The Ecuador debt conversion, led by the Republic of Ecuador and The Nature Conservancy, focuses on forestry and freshwater conservation. Institutional investors increasingly seeking returns aligned with environmental and social impact stand to benefit, alongside development finance institutions and charities collaborating on transactions.
L&G has committed to rigorous impact measurement and governance aligned with KPIs across three themes: building an inclusive economy, enhancing health and wellbeing, and protecting and restoring nature. The firm will collaborate with development finance institutions, charities and industry stakeholders to ensure transparency and measurable outcomes. Emerging-market project developers and sustainability-focused investors should track future transactions L&G structures in this space, as the firm signals it is positioned to shape further deals leveraging its expertise and relationships.
Key figure — New strategy size: $235 million (£183 million) for emerging markets
This content is AI-assisted and reviewed by the ESG Broadcast editorial team. It is for informational purposes only and is not investment or ESG-rating advice. See our Technology & Transparency policy.
← Back to ESG Broadcast