In order to better integrate biodiversity considerations into portfolio construction, first there is a need to better understand how companies impact and depend on biodiversity. Companies must provide dedicated information in order for investors to better consider biodiversity related risks and opportunities in their investment decisions.
Biodiversity disclosure will help drive capital allocation from biodiversity harming activities to those limiting negative impacts or even providing solutions. It will also contribute to the assessment of physical and transition risks in investment portfolios.
While biodiversity is quite possibly one of the most complex ESG subjects in existence, it underpins the entire environmental pillar and has strong connections to the social pillar. Key biodiversity linked elements such as climate, water, pollution, and resource use need to be properly accounted for as a foundational element of corporate environmental strategy.
You can now read the full whitepaper at the link below