Biodiversity

Biodiversity and ESG

Biodiversity has become an important topic in ESG, preceded only to climate change. How to pay attention to nature-related risks and opportunities has become a topic of global concern for various stakeholders.

The Task Force on Nature-related Financial Disclosures has developed disclosure guidelines and adopted a disclosure framework consistent with the Task Force on Climate-related Financial Disclosures. COP15 also develops global biodiversity framework, requiring countries to monitor, manage and disclose natural data.

Biodiversity, Nature and Climate

Biodiversity often comes with nature, which is the foundation of socio-economic activities and encompasses all renewable and non-renewable resources worldwide. Biodiversity is an essential component of nature. For example, the EU’s first comprehensive law on biodiversity and nature, the Nature Restoration Law, regulates both biodiversity and ecosystems.

Biodiversity and climate change have a synergistic effect, and they interact with each other. To address climate change, stakeholders need to consider how to ensure that biodiversity can maximize efficiency of climate actions.

Investing in Biodiversity

The UNEP believes that global biodiversity financing gap will exceed $2.7 trillion annually by 2030, and the current global investment scale accounts for less than one tenth, with 80% of the investment coming from public institutions such as governments and multinational banks.

Biodiversity investment tools will help investors assess the risks faced by their investment portfolios and identify specific industries, regions, and assets that are most susceptible. For example, the Nature Investor Toolkit released by Responsible Investment Association Australasia lists common biodiversity investment tools.