Integrating biodiversity into portfolios: a bespoke framework

Biodiversity losses may have a material effect on some companies, but companies also erode biodiversity through their activities and practices.

Integrating biodiversity into portfolios- a bespoke framework

  • 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