Investor Group Launches Initiative to Engage Companies on Biodiversity and Nature Loss
A group of investors at the COP15 United Nations Convention on Biological Diversity announced the formation of Nature Action 100, an engagement initiative aimed at driving corporate action to address nature loss and biodiversity decline.
Anticipated to formally launch next year, the initiative currently consists of investors including AXA IM, Columbia Threadneedle, BNP Paribas AM, Church Commissioners for England, Domini Impact Investments, Federated Hermes, Karner Blue Capital, Robeco, Storebrand Asset Management, Christian Brothers Investment Services, and Vancity Investment Management.
Adam Kanzer, Head of Stewardship, Americas, BNP Paribas Asset Management, said:
“Over the years, there have been many important investor engagements with corporations that touched on aspects of the biodiversity crisis, but none that placed biodiversity front and center, focusing on reversing nature loss by 2030. Nature Action 100 intends to fill that gap, engaging a broad range of companies on their most significant impacts to help place them on nature-positive pathways. We have no time to lose.”
According to the Nature Action 100 launch statement, the initiative is being formed as financial risk from biodiversity and nature loss grow, with $44 trillion of economic value generation – more than half of global GDP – reliant on nature’s services, and tens of billions of dollars potentially at risk over the next 5 to 10 years from the continued production of deforestation-linked commodities.
Under the new initiative, investors will focus on key sectors identified as systemically important to the goal of reversing nature and biodiversity loss by 2030, with actions including mapping sector pathways, identifying a list of 100 focus companies for engagement, identifying corporate actions needed to protect and restore nature, tracking progress of focus companies against key indicators, and supporting advocacy efforts with policymakers on nature-focused policies.
Liudmila Strakodonskaya, Responsible Investment Analyst, AXA IM, said:
“Nature protection is a challenge that needs to be addressed to preserve the existence of our societies and global economies. Companies and investors must integrate nature and biodiversity considerations in their research, engagement and investment processes. Dialogue between companies and investors then becomes fundamental to drive collective action.”
Nature Action 100’s Secretariat and Corporate Engagement workstreams will be co-led by sustainable investment focused organizations Ceres and the Institutional Investors Group on Climate Change (IIGCC). The two organizations are also coordinators of Climate Action 100+, a climate-focused engagement initiative with 700 investors representing over $68 trillion in AUM.
The initiative’s Technical Advisory Group, responsible for identifying priority engagements and develop science-based investor guidance and tools, will be co-lead by the Finance for Biodiversity Foundation and Planet Tracker.
Stephanie Pfeifer, IIGCC CEO, said:
“Nature has a critically important role to play in global efforts to limit the effects of climate change. Protecting the natural world has the potential to have a powerful impact on climate mitigation, while also supporting positive social change.”