You are currently viewing Candriam: investment in biodiversity is only 15% of what is needed

One in four species of animals and plants is in danger of extinction, and natural ecosystems have decreased by 47% in recent years. The main culprit for this loss of biodiversity (that is, of the species that populate the planet) is the change that has occurred in the use of the land and the oceans, followed by direct exploitation by human and, thirdly, climate change. The diet of human beings already generates 70% of the loss of biodiversity, as highlighted on Tuesday by Alix Chosson, chief analyst of ESG investment at Candriam, who has offered a seminar on-line focused on the deterioration of ecosystems. Visit the specialized portal elEconomista Sustainable investment and ESG.

Marine de Bazelaire, natural capital advisor at HSBC, also took part in the event, highlighting the lack of funding to address the objectives linked to this issue, and has done so by comparing the situation of biodiversity with that of climate change. : “To achieve the objectives of the Paris Agreement [conseguir la neutralidad climtica en 2050] About 3 billion dollars are needed each year and currently the figure stands at 600,000 million; in the meantime, in biodiversity, 800,000 million will be necessary about, and we are at 130,000 million right now. So we only cover 15% of the need, that’s the gap“. Biodiversity begins to nest in the portfolios.

De Bazelaire has emphasized the necessary involvement of the private sector in this segment of sustainable investment. “When it comes to climate change, it is estimated that 50% of all investment comes from the private sector, while for biodiversity 85% comes from the public. For now, the private sector is quite behind, so in the future its role will be necessary and important to fill that gap,” he said. Alix Chosson: “Its ‘growth’ component makes it difficult to prove that ESG investing beats traditional investing.”

The European green taxonomy – the list of economic activities that are considered green from the point of view of investment – includes 6 objectives, and the sixth is precisely the protection and restoration of biodiversity (For now, only the first two have been addressed, climate change mitigation and adaptation, which encompass most of the investable activities). The taxonomy is expected to be complete soon, already addressing those four remaining objectives (protection of water resources, circular economy and pollution control, in addition to biodiversity). Read also: The Eurochamber takes the first step to knock down the green labeling of gas and nuclear.

Despite the fact that climate change has dominated the focus of sustainable investment in recent years, Biodiversity attracts more and more attention. Proof of this, beyond its presence in the taxonomy, is the creation of the task force for nature-related financial disclosures (TNFD), a group of experts working to create a framework for managing and disclosing risks related to nature. The TNFD will address company impacts on natural capital, as the TCFD already does (task force on climate-related financial disclosures), already in force, with climate impacts. Both working groups were created by the Financial Stability Board at the request of the G-20.

De Bazelaire has pointed out that, when talking about biodiversity, it is important “to make a distinction between conservation and restoration. “Conservation would have to do with meeting the objectives of the 30×30 initiative“, he explained. This United Nations movement was born based on a warning from the scientific community: to prevent mass extinctions of species and strengthen resilience to climate change, we must protect at least 30% of our soil and our seas and rivers. until 2030.

For its part, restoration has more to do “with the transition from degraded natural assets to improved ones.” In this process, he added, “financial institutions can help through the green bonds, green loans or impact bonds, among other green financial products. We have been working with ICMA [la Asociacin Internacional de Mercados de Capitales] to reinforce the KPIs (key performance indicators or key performance indicators) related to biodiversity to facilitate dialogue between companies and financial institutions that structure this type of proposal. In any case, this will work better, and this is where the private sector comes in, if these assets generate income streams,” the HSBC adviser warned.

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J. A. Allen

Author, blogger, freelance writer. Hater of spiders. Drinker of wine. Mother of hellions.

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