A ground-breaking Pilot study has shed new light on corporate biodiversity impacts, revealing a that a short list of top 250 high-impact companies on the MSCI World Index are potentially responsible for 73% of the biodiversity impact of the entire index.
The study was launched by the Finance for Biodiversity (FfB) Foundation, co-led by the Technical Advisory Group of Nature Action 100 (NA100), with an analysis developed in partnership with Globalbalance and under the supervision of Arcadis and the Partnership for Biodiversity Accounting Financials (PBAF). Its results show that biodiversity impact extends beyond well-known climate risk sectors, such as food and beverage and materials, and provides insights into industries' impacts on biodiversity to enable investors to identify key biodiversity risk areas and hot spots within their portfolios. Engagement with these industries will be crucial for driving transformative change and transitioning to less nature-intensive business models, and the study also fosters a common ground between the footprinting tool providers, advancing the current state of biodiversity impact research.
The findings of the pilot study are an important step in building accountability architecture to hold corporations and financial institutions accountable for their nature-related actions, and serves as a wake-up call to investors to consider nature and biodiversity risks in addition to climate risks when assessing their portfolio companies.
- Publication date
- 27 April 2023
- Directorate-General for Environment