Heading for Change Trustees approve five new investments, all focused on emerging markets
Heading for Change (HfC), the donor-advised fund focused on accelerating proven climate solutions with women as agents of change, has announced it intends to invest in five new emerging markets gender-smart climate funds.
These new investments mark a significant step forward in Heading for Change creating a global demonstration portfolio of private market funds that span a range of climate themes, regions, and opportunities for impact. This demonstration portfolio is working towards being well diversified and illustrative of the rich and growing set of climate and gender investing opportunities.
Over the coming months, we’ll be sharing more about each of these new funds and the incredible people driving them forward. For now, we’re excited to give you a glimpse into each one.
KawiSafi Fund II (Sub-Sahran Africa; Climate Tech)
Scaling an inclusive green growth transition in Africa
KawiSafi II is a US$200 million fund specialised in the green energy transition and decarbonization strategies in Sub-Saharan Africa with the aim of positively impacting the livelihoods of 100M people and offsetting 100M tonnes of CO2e.
The fund, managed by a diverse, experienced and locally-based team with an existing track record, is making late venture and early growth equity investments across four key themes: energy transition, green productivity, mobility and logistics, and carbon and natural solutions, which they view as key to unlocking low-carbon growth in for a climate resilient future in Africa.
KawiSafi has embedded a clear awareness and understanding of the unique barriers and vulnerabilities women face in the fund’s core markets and climate investment sectors as well as the opportunities and positive impact potential which can be unlocked by using a dual climate & gender lens. They creatively use technical assistance to develop the pipeline of women-owned climate businesses and partner with technical institutes to train women in green jobs.
EcoEnterprises Partners IV, LP (LATAM; Nature-based solutions)
Investing in the planet’s most biodiverse region through natural climate solutions
EcoEnterprises Partners IV, LP is a US$150 million women-led growth capital fund investing in nature-based solutions to conserve critical natural ecosystems in Latin America and the Caribbean. This is EcoEnterprise's Fund’s fourth fund after a deep and impressive history of being a first-mover impact fund in LATAM that has helped to develop the market and prove out this type of investment model for over 20 years.
As the region’s premiere biodiversity fund, they finance scaling SMEs to preserve and restore natural habitats, promote climate action and create social equity alongside generating strong financial returns. The fund’s regional focus targets the key ecosystems in Latin America and Caribbean that hold 40% of the world's remaining biodiversity.
The fund prioritizes the contributions that women make as agents of change and the ways in which they are critical to the success of biodiversity/climate innovations at each point in the investment process and focuses their post-investment support towards creating opportunities for women to be more engaged in economic systems.
Circulate Capital Ocean Fund LAC (LATAM; Oceans & Plastic Pollution)
Helping solve the global crisis of ocean plastic pollution
Circulate Capital Ocean Fund LAC is an inaugural US$100 million fund dedicated to fighting plastic pollution and advancing the circular economy in Latin America & the Caribbean. The fund is managed by specialist emerging market impact investor, Circulate Capital.
The Fund makes investments in companies and technologies - with an emphasis on Brazil, Mexico, Chile, Colombia & the Caribbean - that prevent plastic pollution and advance the circular economy by improving and expanding collection, sorting, processing and manufacturing.
Circulate Capital seeks to improve the livelihoods of women in their portfolio companies and supply chain, addressing pay gaps, providing dedicated training, advancement opportunities and safety and dignity of their work and working conditions.
Heading for Change co-diligenced Circulate Capital’s Ocean Fund LAC with, and invested alongside, Sea Forward Ocean Health (SFOH) Fund, a collaborative multi-donor fund making impact investments and grants to sustain and restore ocean health.
[Watch this space as we will do a more in-depth piece on Circulate Capital’s fund and learnings from the co-investment process with Sea Forward.]
Acumen Climate Action Pakistan Fund (Pakistan; Agriculture)
Driving climate adaptation in Pakistan's critical agriculture sector
The Acumen Climate Action Pakistan (ACAP) Fund is Pakistan’s first climate-focused fund and largest single-sector fund launched to-date.
By investing across the agribusiness value chain, the fund is driving climate adaptation and resilience in one of the most critically climate vulnerable countries in the world — a combination of extreme climate events, environmental degradation and air pollution are projected to reduce Pakistan’s GDP by 18-20% by 2050, largely tied to climate-related disruptions to the agriculture sector, which is the largest sector of the economy.
The US$90 million fund is woman-led with a focus on gender inclusive development, sustainable livelihoods and on building the adaptive capacity and resilience of under-served small-holder farmers in the value chain.
The Catalyst Fund (Africa; Climate Tech)
Fostering climate resilience through tech in Africa
The Catalyst Fund is a women-led venture capital fund and accelerator backing early-stage, high impact tech startups building solutions to manage climate risks, adapt livelihoods and build a climate-resilient future in Africa.
The fund invests across several sectors including agritech and food systems, insurtech and climate fintech, agro-forestry, cold chain, waste, sustainable energy and water management.
Catalyst Fund’s unique approach combines early-stage, high risk capital with bespoke and hands-on venture building support, working alongside founders to accelerate growth, scaling & impact.
The fund has an intentional and integrated approach to climate, gender, diversity and inclusion. One of its guiding principles is that women are critical agents of climate action, which led them to build a women-led investment vehicle to back at least 40% women-led startups and solutions that benefit women. They are mainstreaming a gender approach across all levels, from team composition, to the sourcing of founders to measuring the impact on end-users.
Natalie Shrieber, Head of Investments at Heading for Change, said: “We are super excited about these five new additions to the Heading for Change portfolio as we believe they demonstrate not only the breadth, depth and quality of the gender-smart climate opportunity set in emerging markets from an investment perspective, but also the importance of investing in diverse, place based solutions that tackle the most pressing climate challenges for people and communities face with tremendous potential for both climate and social impact.”
In the coming months we will be delving into each investment more closely, sharing the reasons behind why we chose these specific funds, their approach to climate and gender, and a sneak peek at the innovative companies in their portfolios.
Find out more about Heading for Change’s investment thesis and portfolio companies