COP 15: Biodiversity Opportunities and Risks for Investors

Below is an excerpt from ISS ESG’s thought leadership paper: COP 15: Biodiversity Opportunities and Risks for Investors. The full paper is available for download from the Institutional Shareholder Services (ISS) online library.

KEY TAKEAWAYS

• Biodiversity loss represents a significant systematic risk, one on which investors are increasingly focussed. 
• New biodiversity-related initiatives targeting financial institutions are currently under development.
• 2022’s COP 15 offers an opportunity to reverse biodiversity loss.
• Asset owners and managers are developing biodiversity-related active ownership policies.
• ISS ESG tools such as the Biodiversity Impact Assessment Tool, SDG Solutions Assessment, SDG Impact Rating, ESG Corporate Rating, Norm-Based Research, and Thematic Engagement Solution can help investors to assess companies’ approaches to and impacts on biodiversity.

Figure: Biodiversity Management and Protected Areas grading for Large Cap companies

Source: ISS ESG Data

Explore ISS ESG solutions mentioned in this report:

• ISS ESG’s Biodiversity Impact Assessment Tool helps investors assess the impact of companies’ business and supply chain activities on biodiversity.
• Understand the impacts of your investments and how they support the UN Sustainable Development Goals with the ISS ESG SDG Solutions Assessment and SDG Impact Rating.
• Identify ESG risks and seize investment opportunities with the ISS ESG Corporate Rating.
• Assess companies’ adherence to international norms on human rights, labor standards, environmental protection and anti-corruption using ISS ESG Norm-Based Research.
• Develop engagement strategies, define achievable engagement objectives and manage your engagement process with ISS ESG’s Norm-Based Engagement Solution and Thematic Engagement Solution.