50 Investible Opportunities for a New Nature Economy 2026

To help increase the technological maturity of these opportunities, corporates can increase research and development budgets in high-potential areas, while exploring investment in innovative start-ups and business lines that are building out these opportunities using new approaches, science and technology. Mahindra EPC, for example, is a relatively small, innovative irrigation business within Mahindra Group. However, its parent company continues to invest in because it believes in building Indian farmers’ resilience to climate change and because the business is now self-sustaining, if not yet highly profitable. Furthermore, by supporting higher crop yields, Mahindra ensures its farming customers are better off financially; in turn, they often reinvest those earnings into Mahindra’s other business lines. Financial institutions have a role to play in financing early-stage companies or research and development activities in businesses. The nature of emerging opportunities, including their growth and innovation potential, makes them well-suited to private equity and venture capital funding, often combined with insurance products (e.g. related to technology and performance). Equity investments and debt financing in emerging technologies – innovative irrigation solution providersBOX 4 The global irrigation equipment market has expanded steadily over the past decade, supported by policy incentives, water scarcity and increasing pressure on farm productivity. Today, several global players including Rivulis, Jain Irrigation, Netafim (Orbia), Lindsay Corporation and Valmont Industries operate at scale, reflecting the sector’s transition from fragmented local suppliers to integrated agricultural infrastructure providers through growth and consolidation. For example, Rivulis is a global company founded in 1966 that provides advanced irrigation solutions designed to enhance agricultural productivity while promoting water conservation and environmental sustainability. The company deploys smart irrigation technologies, including advanced hydraulic irrigation design software, agronomic imagery and sensor- free software solutions. Its product range supports individual growers to large corporate plantations in the agriculture, horticulture, greenhouse, landscape and mining industries. The company invests significantly in technology development, with three R&D centres in agricultural hot spots and five design centres globally. The company has grown through a range of equity and M&A transactions, as well as debt financing, and now has 3,300 business partners worldwide and a wholesale retail and large dealer network in 120 countries. This includes: –2006 acquisition of Plastro Irrigation, Roberts Irrigation and T-Systems by John Deere to form John Deere Water. –2014 acquisition by private equity firm, FIMI Opportunity Funds, after a competitive auction. Rivulis’ losses at this stage prompted John Deere to sell. FIMI changed the name to Rivulis Irrigation, recruited a new management team and implemented a turnaround strategy. –2016 acquisition of Agam Advanced Agriculture and the creation of a precision agriculture subsidiary. –2017 acquisition of Eurodrip, an established micro and drip irrigation provider. –2020 acquisition of Rivulis by Temasek Holdings, which became its majority shareholder, as part of a significant agri-food investment strategy and commitment to sustainable food systems. –2022 merger with Jain Irrigation International to create one of the largest irrigation companies in the world. To finance the merger, Rivulis also signed agreements with five banks – HSBC, Rabobank, State Bank of India, Leumi Bank and First International Bank of Israel – to finance its current and future debt for up to $250 million. –2023 conversion of credit facility into a sustainability-linked loan with carbon emissions and circularity targets, led by HSBC and ING. The evolution of the advanced irrigation sector highlights the role of equity in financing strategic growth and innovation-intensive business models. This is likely to be important for many nature- positive technologies with high growth potential and high R&D requirements, providing attractive investment opportunities for private equity and institutional investors. Emerging innovations often require the creation of new “market plumbing” to help them reach commercialization. Beyond their novelty, emerging innovations often require the creation of new “market plumbing” to help them reach commercialization. Some examples of this include: –Market-ready contracts with potential buyers, such as standardized purchase agreements, to support due diligence and underwriting. –Common data and measurement tools, such as baseline data, and measurement reporting and verification (MRV) protocols, so that performance is verifiable and comparable. –Clear routes to connect and receive required approvals, to codify how new solutions can plug into existing business processes and infrastructure and be operationalized consistently. –Availability and performance guarantees, including cover for losses due to technology underperformance, supported by performance- linked pricing or secured against assets such as plants and intellectual property. 50 Investible Opportunities for a New Nature Economy 27