ESG Viewpoint: Biodiversity Best Practice and Engagement Approach
Insights

ESG Viewpoint: Biodiversity Best Practice and Engagement Approach

Nature loss poses financially material risks for asset managers. We explain how biodiversity risks can be assessed, outline our approach to engaging with businesses on the topic and detail our best practice framework.

The Earth’s biodiversity is dwindling at an alarming rate. Around a quarter of species are at risk of extinction by 2050, and global wildlife populations have plummeted by 69% on average since 1970. The key drivers of biodiversity loss are climate change, land-use change, pollution, direct exploitation of natural resources, and invasive species. All five drivers are primarily fuelled by corporate activities. Agriculture-driven habitat loss is an identified threat to 24,000 of the 28,000 species threatened with extinction, 32% of World Heritage Sites are threatened by mining or oil and gas operations, and 27% of total ecosystem service losses are due to chemical pollution.

Corporates both contribute to biodiversity loss and face increasing nature-related risks to their business models due to financial dependencies on nature. Nature contributes between US $44 trillion and $150 trillion to the world’s economy each year – the loss of nature-based services poses severe risks for business. Pandemics such as COVID-19 are made more likely by habitat loss, wildlife trafficking and humanity’s destruction of biodiversity, and 75% of agricultural crops, worth $2.4 trillion rely on insect pollination which is threatened by declining insect populations.

Interested in learning more?

Nature loss poses financially material risks for asset managers and it’s an issue closely linked to climate change. We explore how biodiversity risks can be assessed, outline our approach to engaging with businesses on the topic and detail our best practice framework. Download the full viewpoint to discover more.

13 December 2022
Harry Ashman
Harry Ashman
Vice President, Analyst, Responsible Investment
Joe Horrocks-Taylor
Joe Horrocks-Taylor
Senior Associate, Analyst, Responsible Investment
Share article
Share on twitter
Share on linkedin
Share on email
Key topics
Related topics
Listen on Stitcher badge
Share article
Share on twitter
Share on linkedin
Share on email
Key topics
Related topics

PDF

ESG Viewpoint: Biodiversity Best Practice and Engagement Approach

Important Information

Views and opinions have been arrived at by Columbia Threadneedle Investments and should not be considered to be a recommendation or solicitation to buy or sell any companies that may be mentioned.

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

Engagement efforts outlined in this Viewpoint reflect the assets of a group of legal entities whose parent company is Columbia Threadneedle Investments UK International Limited and that formerly traded as BMO Global Asset Management EMEA. These entities are now part of Columbia Threadneedle Investments which is the asset management business of Ameriprise Financial, Inc. Engagement and voting services are also executed on behalf of reo® clients.

true
true

Important Information

Views and opinions have been arrived at by Columbia Threadneedle Investments and should not be considered to be a recommendation or solicitation to buy or sell any companies that may be mentioned.

The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

Engagement efforts outlined in this Viewpoint reflect the assets of a group of legal entities whose parent company is Columbia Threadneedle Investments UK International Limited and that formerly traded as BMO Global Asset Management EMEA. These entities are now part of Columbia Threadneedle Investments which is the asset management business of Ameriprise Financial, Inc. Engagement and voting services are also executed on behalf of reo® clients.

Related Insights

7 February 2023

Fixed Income Desk

In Credit - Weekly Snapshot

In Credit Weekly Snapshot – February 2023

Our fixed income team provide their weekly snapshot of market events.
Read time - 3 min
6 February 2023

Steven Bell

Chief Economist, EMEA

What is going on with the US economy?

Steven Bell, our Chief Economist EMEA, explains why we are going to have to wait to get an accurate sense of how the land really lies.
Watch time - 7 min
31 January 2023

Fixed Income Desk

In Credit - Weekly Snapshot

In Credit Weekly Snapshot – January 2023

Our fixed income team provide their weekly snapshot of market events.
Read time - 3 min

You may also like

Investment approach

Teamwork defines us and is fundamental to our investment approach, which is structured to facilitate the generation, assessment and implementation of good, strong investment ideas for our portfolios.

Funds and Prices

Columbia Threadneedle Investments has a comprehensive range of investment funds catering for a broad range of objectives.

Our Capabilities

We offer a broad range of actively managed investment strategies and solutions covering global, regional and domestic markets and asset classes.

Thank you. You can now visit your preference centre to choose which insights you would like to receive by email.

To view and control which insights you receive from us by email, please visit your preference centre.