biodiversity

Current efforts to address global biodiversity loss are inadequate and face a financing gap of between 598 billion and 824 billion dollars per year, a new study has concluded. To address this gap, governments and businesses need to support the introduction of ‘biodiversity credit markets’, to be modelled in a manner similar to the carbon credit markets that already exist.

Banks are keen to invest more in biodiversity but experience difficulties in finding suitable products. The concept of biodiversity is stretched and providers do not make sufficiently clear what goals they are pursuing and how these are measured. 

Sustainability regulations require asset managers and banks to take into account a number of factors on which they must also report. A large part of it deals with biodiversity, giving the topic great attention from banks and asset managers as well as from providers. 

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.