Biodiversity losses may have a material effect on some companies, but companies also erode biodiversity through their activities and practices.
- A bespoke ESG rating process and investment framework can ensure that biodiversity issues are taken into account in portfolio construction.
- We believe that a biodiversity-oriented approach should exclude the weakest issuers regarding practices and policies, while favouring those with over 20% of revenues linked to natural capital themes, or over 80% aligned with providing climate change solutions.
- In our view, the most appropriate measure to assess and compare the biodiversity footprints of companies and sectors is the Mean Species Abundance (MSA) metric.
- Engagement with companies on biodiversity issues in their operations and value chains is crucial.
You can now read the full whitepaper at the link below