NYSE Partners for Development of New Asset Class

The New York Stock Exchange (NYSE) and Intrinsic Exchange Group (IEG) announced 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. According to a story in MarketsMedia news, the formidable output underscores the financial potential of an asset class that is wholly based on environmental investment. 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.