New York Stock Exchange scraps its plan to list natural asset companies

The New York Stock Exchange on Jan. 17 withdrew a proposal it had filed with the US Securities and Exchange Commission to list a new class of publicly traded entities known as natural asset companies.

The plan had come under criticism from farmers worried about land grabs; groups advocating against environmental, social and governance-related policies; mining companies worried about losing access to national resources; Republican attorneys general; and conservative talk shows.

"After reviewing feedback from regulators, market participants and others, we have withdrawn our proposed rule filing to enable the listing of natural asset companies," a spokesperson for the stock exchange said in a statement. "We appreciate the work of Intrinsic Exchange Group [EIG], which approached us with the idea of creating this new asset class, as well as those who took the time to study this proposal and share their views with us."

The NYSE and EIG had described natural asset companies (NACs) as "fundamentally different than traditional companies because they are chartered to protect, restore and grow the natural assets under their management to foster healthy ecosystems."

Under the proposed rule, NACs would have held land rights to maximize ecological performance, similar to how companies can hold mineral rights, and would license such rights from "sovereign nations or private landowners."

"Private interests, including foreign-controlled sovereign wealth funds, could use their capital to purchase or manage farmland, national and state parks, and other mineral-rich areas and stop essential economic activities like farming, grazing and energy extraction," Utah Treasurer Marlo Oaks, a vocal ESG critic, said in a statement. "It is my hope this news signals an end to this horrible idea and that it does not resurface in other venues."

Proponents of NACs say such enterprises can bring much-needed investments in restoration of degraded land while adding a monetary value to nature. The global financing gap to reverse the degradation of biodiversity by 2030 may be as high as $824 billion annually, according to the now-scrapped proposal.