NYSE and Intrinsic Exchange Group Partner to Launch New Asset Class to Power a Sustainable Future

NEW YORK–(COMMERCIAL THREAD) – The New York Stock Exchange (NYSE), part of Intercontinental Exchange, Inc. (NYSE: ICE), one of the world’s leading providers of data, technology and market infrastructure, and Intrinsic Exchange Group (IEG) announced today that they are developing a new class of publicly traded asset called Natural Asset Companies, or NAC. NACs are sustainable businesses that hold the rights to ecosystem services produced by natural, exploited or hybrid lands.

Globally, natural assets produce approximately $ 125 trillion per year in ecosystem services, such as carbon sequestration, biodiversity and drinking water. The formidable production underlines the financial potential of an asset class entirely based on environmental investment.

This new asset class on the NYSE will create a virtuous circle of investing in nature that will help finance sustainable development for communities, businesses and countries, said Douglas Eger, CEO of IEG. Together, IEG and the NYSE will enable investors to access reserves of natural resources and transform our industrial economy into a more equitable one.

Since the value created by NACs is not fully captured by traditional economic metrics, IEG has developed an accounting framework to measure green performance to complement GAAP financial statements. Developed in consultation with former FASB President Robert Herz and leading accounting firms, the IEG framework enables investors to assess the ecosystem services generated by NACs.

In addition, the NYSE will develop and seek SEC approval for unique listing requirements tailored to NACs and incorporating IEG accounting methodology. IEG and the NYSE would then begin working with the first NACs to help them prepare for listing and trading as public entities on the NYSE.

With the introduction of Natural Asset Companies, the NYSE plans to provide investors with an innovative mechanism to financially support the sustainability initiatives they deem essential to our future. Our work with Intrinsic Exchange Group is another example of making the NYSE available to our community to make meaningful progress on ESG issues with a solutions-based approach, said Stacey Cunningham, President of NYSE Group.

IEG is currently advising a number of sovereign countries, private land owners and public companies on the potential creation of NACs. IEG and the Inter-American Development Bank (IDB) are working with the government of Costa Rica to lay the foundation for NACs that would preserve and develop natural assets across the country. In the private sector, IEG plans to announce its first partnership later this fall in collaboration with a multinational.

IEG received seed funding from IDB Lab and IDB, the Rockefeller Foundation, Aberdare Ventures and Entering Ideas. The IDB was an early proponent of IEG’s vision and helped it identify and develop projects in South American countries. The IDB’s extensive network of relationships and its long-standing commitment to regional and global sustainability efforts position it as an important key partner of IEG.

The NYSE has taken a minority stake in IEG and plans to clear its accounting framework to support the development of the new asset class. The transaction will not have a significant impact on ICE’s earnings and will not have an impact on the capital allocation plans.

Statements from key stakeholders:

Robert Herz, former president of the FASB:

In addition to GAAP financial statements, we believe it is absolutely essential to provide investors in natural asset companies with relevant, reliable and understandable information about the flows of ecosystem services they produce and their stocks of natural assets. natural capital.

Mauricio Claver-Carone, President of the Inter-American Development Bank

This NYSE and IEG announcement comes at a critical time when the economies of many countries in Latin America and the Caribbean are grappling with the pandemic. The IDB Group is proud to have been IEG’s first supporter as a long-time investor and partner working with countries to develop exchange projects. Unlocking the tremendous intrinsic value of nature will allow countries to leverage their natural capital for conservation and human development goals.

Dr Rajiv J. Shah, President of the Rockefeller Foundation

Climate change is an existential threat, a threat that requires all of us to urgently consider all opportunities to mobilize resources to protect vulnerable ecosystems and communities and fight for the future of billions of people around the world. This is why we are proud to have been one of the early proponents of the EGI approach to identify new and sustainable ways for countries to protect their lands and rivers while creating a market to preserve. natural assets.

Andrea Meza Murillo, Minister of Environment and Energy, Costa Rica

“In Costa Rica, IEG is supporting us to build a pilot project to create a natural asset company. This will help deepen the economic analysis to give nature its economic value, as well as continue to mobilize financial flows for conservation. a key moment when we must meet the social and economic needs of our people and comply with what science tells us about the 30×30 goal, about protecting at least 30 percent of the land and oceans by 2030 . ”

About the NYSE group

NYSE Group is a subsidiary of Intercontinental Exchange (NYSE: ICE), one of the world’s leading providers of data, technology and market infrastructure. The NYSE group’s stock exchanges – the New York Stock Exchange, NYSE American, NYSE Arca, NYSE Chicago, and NYSE National – trade more volume of U.S. stocks than any other stock exchange group. The NYSE is the world’s premier venue for raising capital. NYSE Arca Options and NYSE Amex Options are the major stock option exchanges. To learn more, visit nyse.com.

About the intercontinental exchange

Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks to connect people to opportunity. We provide financial technology and data services in major asset classes that provide our clients with access to essential workflow tools that increase transparency and operational efficiency. We operate Exchanges, including the New York Stock Exchange, and clearing houses that help people invest, raise capital and manage risk across multiple asset classes. Our global fixed income data services and execution capabilities provide insights, analytics, and platforms that help our clients capitalize on opportunities and operate more efficiently. TO ICE Mortgage Technology, we’re transforming and digitizing the US residential mortgage process, from consumer engagement to loan registration. Together, we transform, streamline and automate industries to connect our customers to opportunities.

Trademarks of ICE and / or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE, and New York Stock Exchange. Information regarding trademarks and additional intellectual property rights of Intercontinental Exchange, Inc. and / or its affiliates can be found here. The key information documents for some products covered by the EU Retail and Insurance Investment Products Regulation can be accessed on the website of the relevant exchange under the heading Key Information Documents (KIDS) .

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 – Statements in this press release regarding ICE’s business that are not historical facts are “forward-looking statements” that involve risk and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in forward-looking statements, see documents filed by the Securities and Exchange Commission (SEC) of ICE, including, but not limited to be limited to the risk factors in ICE’s annual report. Report on Form 10-K for the fiscal year ended December 31, 2020, as filed with the SEC on February 4, 2021.

About the intrinsic exchange group

Intrinsic Exchange Group (IEG) has launched a new publicly traded asset class called Natural Asset Companies, or NAC. NACs are sustainable businesses that hold the rights to ecosystem services produced by natural, exploited or hybrid lands. NACs enable owners of natural assets to convert the value of nature into financial capital, providing the additional resources needed to fuel a sustainable future. IEG has partnered with the New York Stock Exchange, part of Intercontinental Exchange, Inc. (NYSE: ICE), a minority investor in IEG, to list and trade NACs on the NYSE. IEG works with owners of natural assets to train and catalog NACs. IEG has developed an accounting framework to measure ecological performance to complement GAAP financial statements. Developed in consultation with former FASB President Robert Herz and leading accounting firms, the IEG framework enables investors to assess the ecosystem services generated by NACs. IEG was founded in 2017 by entrepreneur and environmentalist Douglas Eger. IEG received seed funding from IDB Lab and the Inter-American Development Bank, the Rockefeller Foundation, and Aberdare Ventures and Entertaining Ideas.

SOURCE: Intercontinental exchange

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