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Asset managers tackle biodiversity loss by creating metrics to assess corporate impacts

Asset managers are addressing the pressing issue of corporate harm to nature and biodiversity. With growing investor concern due to recent environmental instability and crises, companies like Allianz Global Investors and T Rowe Price are pioneering the development of nature assessment tools.

Asset managers tackle biodiversity loss by creating metrics_Bornean orangutans playing on lianas in a jungle in Indonesia_visual 1A Bornean orangutan with its baby, playing on lianas in a jungle, Indonesia.

In the absence of universally accepted standards for measuring corporate impact on nature, asset managers are crafting their own evaluation criteria. Matt Christensen, the Global Head of Sustainable and Impact Investing at Allianz Global Investors, revealed that they've created a metric focusing on land. This metric allows them to monitor practices affecting land resources over time.

Read more: 7 Insights from assets owners on the rise of sustainable investing

This innovative approach enables companies to assess whether land species’ abundance is diminishing in their investment portfolios. Allianz Global Investors, with €520 billion in assets, is already employing this metric for land-based biodiversity and plans to extend it to ocean health impact next year.

Read more: Companies investing in carbon credits outperform peers in environmental action

A 2020 report by the World Economic Forum highlights the economic significance of healthy ecosystems and biodiversity, with over $44 trillion of economic value closely tied to them. Sectors most at risk include construction, agriculture, and food and beverages. Holly So, a sustainability strategist at Allianz Global Investors, emphasises the importance of biodiversity, particularly in the Asia-Pacific region, which is home to nearly half of the global biodiversity hotspots and two-thirds of the world's population.

DGB Group partners with businesses and investors to facilitate their engagement in the rapidly expanding global nature market. Our core expertise lies in restoring nature through large-scale nature-centric projects, such as reforestation, afforestation, and energy-efficient cookstove projects. Our services are accessible to a diverse array of stakeholders, including large corporations, small businesses, government entities, and individuals. Our primary objective is to empower companies to invest in environmental conservation and achieve carbon neutrality. To commence your eco-conscious journey, you can start the process by evaluating your environmental impact or connecting with our dedicated team to discuss customised solutions tailored to your specific requirements.

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