Biodiversity: the next frontier in impact investing

At its core, impact investing links intricately with the preservation of biodiversity. The vitality of ecosystems and survival of numerous species plays a pivotal role in pressing global challenges like climate change and sustainable development. 

Impact investors are increasingly recognising their responsibility to preserve biodiversity, driven by both the ethical imperative and potential for financial returns in this realm. The UN Biodiversity Conference COP15 on Biodiversity highlighted a new dimension of challenges in our warming world, symbolised by the adoption of the post- 2020 Global Biodiversity Framework - a landmark akin to the “Paris Agreement” for biodiversity conservation.

At Swiss Life Asset Managers, we believe in the importance of preserving biodiversity for sustainable investors. Recognising that biodiversity forms the bedrock of health and resilience of our natural systems, it provides indispensable ecosystem services that bolster both human well-being and economic development.

Exploring uncharted horizons

Given the battle against global warming, the financial sector encounters a new, pivotal challenge: safeguarding biodiversity. Factors such as changes in land and sea use, species exploitation, climate change, pollution, and invasive species significantly contribute to ecosystem degradation. Biodiversity and climate crises are intertwined; ecosystems play a central role in carbon absorption. Yet oceans and terrestrial ecosystems absorb only half of globally emitted CO2. The degradation of nature carries extensive health, social, and economic consequences, directly affecting business operations and revenues. For instance, 5–8% of global agricultural production can be directly attributed to animal pollination, representing an annual market value of 235 to 577 billion US dollars.

You can now read the full ’Thought Leadership’ articles at the link below 

Supporting documents

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