A global coalition of investors, including Canada’s Desjardins, Fondaction, Manulife, and Vancity, released a report highlighting the impact of some of the world's largest companies on biodiversity. The pilot study of the MSCI World Index was conducted by the Finance for Biodiversity Foundation, which found that some industries and companies have an significant impact on biodiversity.
Red-bellied Macaw, sitting on a tree and eating. Brazil, South America.
The analysis found the food, beverage, and tobacco sector has the highest potential impact on biodiversity, accounting for 21% of all identified sectors, followed by the materials sector at 18%. The report highlights that a relatively small number of companies, 250 of the MSCI Index, may be responsible for 73% of the biodiversity impact, meaning investors have the opportunity to bring about substantial change with dedicated and focused corporate engagement efforts.
Read more: 5 ways businesses can implement the new Global Biodiversity Framework
According to Annelisa Grigg, Director and Sustainability Advisor at Globalbalance, investors can drive real, positive change for biodiversity by focusing their engagement on the identified companies. Liudmila Strakodonskaya, the responsible investment analyst at AXA Investment Managers, emphasises that investors can use the report's conclusions to identify biodiversity risk areas and hotspots within their portfolios. Engagement with those industries will be key to ensure transformative change and a transition to less nature-intensive business models.
Explore the benefits of green investing
The findings of this report show that biodiversity loss is a growing concern for investors and that they are taking a proactive approach to address it. For DGB Group, protecting biodiversity is at the core of our mission of helping nature flourish. That is why our projects focus on protecting biodiversity and ensuring the health of local ecosystems. We also help companies offset their impact on biodiversity through the biodiversity credits generated by our projects to create a more sustainable, biodiverse future.
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