Since biodiversity loss affects large swaths of the economy, it should be front of mind for investors. Not least because, as Adam Kanzer, head of stewardship for the Americas, points out, nature loss also makes meeting the world’s climate goals harder.
Listen to this Talking heads podcast in which Adam and Andrew Craig, co-head of the investment insights centre, discuss the current COP15 meeting. The conference seeks to agree on a set of goals including a roadmap for reversing man-made nature loss from activities such as deforestation and securing ecosystem services such as air and water purification by 2030.
“Investors have a critical role to play – many of the companies we [collectively] invest in are driving the problem or are highly depend on nature.” Adam argues for a collaborative effort by investors and policymakers to make progress on nature-positive ways of living and working. These could help curb the systemic risk from biodiversity loss. They represent sizeable investment opportunities.
You can also listen and subscribe to Talking heads on YouTube and read the transcript.
Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience.
Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice.
The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.