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.
World Economic Forum Releases Biodiversity Credits Report
The World Economic Forum (WEF) releases a biodiversity credits report
EU Reaches Provisional Agreement on Nature Restoration Law
EU announced the adoption of the Nature Restoration Law, which aims to strengthen Europe’s resilience to climate change
Finance for Biodiversity Foundation Releases Guidance for Financial Institutions
The Finance for Biodiversity Foundation (FfB) has released guidance to help financial institutions manage the relationship between biodiversity and climate
TNFD Issues Recommendations on Nature-related Information Disclosure
TNFD released recommendations on nature-related information disclosure
Euronext Launches World’s First Biodiversity Enablers Index
Euronext has released the world’s first Biodiversity Enablers Index (BEI), which aims to measure the positive impact of investees on biodiversity
Fitch Releases a Report on Biodiversity and ESG
Fitch releases a report on biodiversity and ESG
TNFD Releases Global Natural Data Report
The Taskforce on Nature-related Financial Disclosures (TNFD) released the Global Natural Data Report
CDP Releases Global Water Report
The international climate change research institute CDP has released a global water report, which analyzes the water resource disclosures of over 3900 companies and analyzes the global water market of over 400 billion US dollars. This report was jointly launched by the Norwegian Sovereign Wealth Fund (Norges Bank Investment Management) and is also a midpoint period since the launch of the Global Water Action Decade in 1977