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

The New York Stock Exchange (NYSE), part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, and Intrinsic Exchange Group (IEG) announced today that they are jointly developing a new class of publicly traded assets called Natural Asset Companies, or NACs. NACs are sustainable enterprises that hold the rights to ecosystem services produced by natural, working or hybrid lands.

On a global basis, natural assets produce an estimated $125 trillion annually in ecosystem services, such as carbon sequestration, biodiversity and clean water. The formidable output underscores the financial potential of an asset class that is wholly based on environmental investment.

“This new asset class on the NYSE will create a virtuous cycle of investment in nature that will help finance sustainable development for communities, companies and countries,” said Douglas Eger, CEO of IEG. “Together, IEG and the NYSE will enable investors to access nature’s store of wealth and transform our industrial economy into one that is more equitable.”

Because the value created by NACs is not fully captured by traditional economic metrics, IEG has developed an accounting framework to measure ecological performance to complement GAAP financial statements. Developed in consultation with former FASB Chairman Robert Herz and leading accounting firms, IEG’s framework enables investors to value 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’s accounting methodology. IEG and the NYSE would then begin working with the first NACs to help prepare them for listing and trading as publicly held entities on the NYSE.

“With the introduction of Natural Asset Companies, the NYSE plans to provide investors an innovative mechanism to financially support the sustainability initiatives they deem critical to our future. Our work with Intrinsic Exchange Group is another example of the NYSE tapping into our community to drive 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 nations, private landowners 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 grow natural assets throughout the country. In the private sector, IEG anticipates announcing its first partnership later this fall in collaboration with a multinational corporation.