Four French asset managers have joined forces to develop an innovative tool that measures the impact of investments on global biodiversity. The fund houses - Axa Investment Management, BNP Paribas Asset Management, Sycomore AM and Mirova - think there is a growing interest in quantitative indicators.
“It is critical that we begin to take into account biodiversity-related challenges. We believe it is crucial that the financial community addresses this issue in the same way that it has addressed climate change,” the asset managers said in a statement.
In this context, they have invited ESG data providers to collaborate on the development of a methodology to measure the impact of business activities on biodiversity, that should include the following aspects, among others:
- Measurement of biodiversity using a physical indicator indicator (e.g.: km2 mean species abundance, potentially disappeared fraction of species, etc.)
- A “lifecycle” approach: the methodology must factor in the entire supply chain from product use to end-of-life.
- Sector estimates: sector assessment grids should make estimates tailored to the specificities of each sector possible.
- Financial materiality: companies’ levels of exposure to the challenges presented by biodiversity must be assessed in addition to physical impact.
Data providers are invited to express their interest within the framework of this so-called ‘Call for Expression of Interest’ (CEI). This can be done until 31 March.