Karner Blue Capital (KBC) manages diversified, long-only, all-capitalisation, global and US-only public equity strategies focused on biodiversity preservation, climate change mitigation, and environmental stewardship.
KBC manages the Karner Blue Biodiversity Impact Fund, a mutual fund launched in September 2019. The firm also manages 12 nature-focused separately managed accounts, most with track records exceeding five years.
Its strategies are designed to facilitate the regeneration of nature. To that end, KBC says it integrates biodiversity impacts and dependencies into its investment decision-making process by assessing the related risks, evaluating the efforts companies are making to mitigate those risks, and identifying new "nature-forward" business opportunities.
Its Biodiversity Impact Strategy includes all industries that have "material" biodiversity impacts and dependencies. The Conservation Strategy is narrower as it omits exposure to companies in the fossil fuels and pharmaceutical industries. Finally, the firm's Blue Impact Strategy is focused on the blue economy, particularly those companies that seek to protect marine ecosystems and improve biodiversity.
"Reversing nature loss requires a whole of society approach, including efforts in the public equity markets. By engaging with and investing in publicly traded companies with best-in-class policies regarding biodiversity preservation and nature-based solutions, we aim to harness the power of the capital markets to transform entire industries and reverse nature loss by 2030," commented Kate Gibney, who serves as head of biodiversity research at KBC.
Its investment process is informed by KBC's proprietary industry frameworks, comprised of certain key performance indicators (KPIs), to evaluate material nature-based impacts and dependencies.
These frameworks provide a nature-based, peer-relative assessment of company biodiversity performance and are guided by the principles of the Global Biodiversity Framework, as well as the guidance released this year by the Taskforce on Nature-related Financial Disclosures (TNFD).
"As biodiversity reporting becomes more standardised and widespread, we plan to incorporate additional databases into our process. We are hopeful that biodiversity impact reporting becomes as standardised as GHG emissions inventories, so we can utilise that information as it becomes available," Vicki Benjamin, KBC's co-founder and CEO added.
KBC says it is also committed to biodiversity corporate engagement and advocacy. KBC is a founding member of the collaborative engagement initiative Nature Action 100, which launched in June 2023, and was one of the 26 original founding members of the Finance for Biodiversity Pledge.
"The need to protect the long-term viability of our planet for future generations is one of the most pressing issues of our time. Nature Action 100 and the Finance for Biodiversity Pledge are important investor-led initiatives that are intended to bring about a paradigm shift in the relationship between business and nature. We are excited to be working alongside like-minded investors who are deeply committed to building a shared future for all life on Earth," commented Andrew Niebler, KBC's co-founder.
KBC is a woman-owned and led enterprise, an SEC registered investment adviser, a certified B Corporation, a signatory of the UN Principles for Responsible Investment (UN PRI), and a member of the Finance for Biodiversity Foundation. It currently has approximately $10 million in assets under management.
