Tuesday, January 31, 2023
Green Reporter
  • Home
  • Biodiversity
  • Climate Change
  • Energy
  • Filmmaking
  • Food
  • Investment
  • Management
  • Sustainability
  • Technology
  • Transportation
No Result
View All Result
  • Home
  • Biodiversity
  • Climate Change
  • Energy
  • Filmmaking
  • Food
  • Investment
  • Management
  • Sustainability
  • Technology
  • Transportation
No Result
View All Result
Green Reporter
No Result
View All Result
Home Biodiversity

Evidence of link between biodiversity loss and performance of investments

GrR by GrR
June 22, 2021
in Biodiversity
0
57
SHARES
246
VIEWS
Share on FacebookShare on Twitter


David Craig is CEO of Refinitiv and Group Leader of Data & Analytics Division at London Stock Exchange Group (LSEG)

David Craig is CEO of Refinitiv and Group Leader of Data & Analytics Division at London Stock Exchange Group (LSEG)

But the link between this and the future performance of your investments or pensions remains little understood and difficult to quantify.

However, compelling evidence of this link is emerging, and the picture is stark. More than half of the world’s economic output – US$44tn of economic value generation – is moderately or highly dependent on nature. Economies and corporates rely on healthy ecosystems, which provides critical services that support the world’s social and economic systems, such as crop, livestock and fish production, pollination and coastal protection.

Sign up to our Business newsletter

Sign up to our Business newsletter

The recorded extinction of 83 per cent of wild mammals and 50 per cent of plants therefore represents significant risk to corporate and financial stability.

With this in mind, finance ministers from the G7 have endorsed the launch of the new Taskforce on Nature-related Financial Disclosures (TNFD), a new global market-led initiative which aims to provide financial institutions and corporates with a simple framework to address the complex issue of understanding and measuring nature related risks, and enabling activity and finance to be re-directed to nature positive activities.

The launch of TNFD is so important because biodiversity has often been relegated to a niche status in the world of sustainable investment priorities. The opportunity cost of inaction is also becoming hard to ignore. Action for nature-positive transitions could generate up to US$10.1 tn in annual business value and create 395 million jobs by 2030.

I am honoured to have been appointed co-chair of the new taskforce alongside Elizabeth Maruma Mrema, executive secretary of the UN Convention on Biological Diversity (CBD). In its first year, the TNFD aims to build upon the success of the Task Force on Climate-related Financial Disclosures (TCFD), which has become instrumental in mainstreaming the issue of climate-related financial risks.

The taskforce has also committed to delivering a global framework by 2023 for companies to report and act on evolving nature-related risks.

Historically, inconsistent reporting from companies using a hodgepodge of industry standards and widespread data quality issues has proven to be a major barrier. It has prevented investors from comparing sustainability performance on an “apples to apples” basis on issues such as water security, land use, bio-diversity and greenhouse gas emissions.

To really start impacting capital flows and driving corporate behaviours, we need ubiquitous adoption of globally consistent reporting standards in the same way financial metrics such as EBITDA or price to earnings ratios are ingrained into financial markets.

Such information will become vital to understanding the risks associated with certain investment decisions, especially in countries such as Australia, India and Mexico – where biodiversity risks are projected to be most acute.

The horrendous wildfires that plagued Australia in January 2020 and the resultant loss of an estimated four billion animals serve as a poignant reminder of climate and nature-related risks that can destroy delicately balanced ecosystems and significantly disrupt economies and livelihoods.

LSEG, which recently became the first stock exchange to join the United Nations Climate Change ‘Race to Zero’, is well positioned at the heart of global financial markets to act as a facilitator in driving change.

In addition to engaging proactively with industry standard setters and regulators, LSEG offers markets in which to raise green finance and data on capital raising trends. The opportunity is well recognised. Refinitiv Workspace data shows that over 4,700 green bonds have been issued in the last seven years, raising a combined $1.35tn.

Moreover, LSEG also offers innovative indices in green financing, ESG data and analytical tools that investors can use to align portfolios of stocks and bonds and re-direct financial investments towards achieving the goals of the Paris Agreement.

While still a complex tapestry of definitions, standards and investment approaches, it is truly phenomenal how quickly the financial services sector is embracing a range of important sustainability issues.

It is exciting to think that we are at the dawn of the biggest structural reallocation of capital to ever take place. I remain optimistic about the future.



Source link

Previous Post

Who's Who: Edouard Waintrop, artistic director of Red Sea International Film Festival – Arab News

Next Post

Dr. Yufeng Zhao Conducts Groundbreaking Frontier Research in Material Science and Sustainability

GrR

GrR

Green Reporter is a global source for news of sustainability, green industry, green technology, clear energy, sustainable food production, and green investments. Our aim is to deliver the best news and information to you.

Next Post

Dr. Yufeng Zhao Conducts Groundbreaking Frontier Research in Material Science and Sustainability

  • Trending
  • Comments
  • Latest

Climate change in our backyard: Manitoba begins to grapple with the consequences – Winnipeg

August 10, 2021

Repsol starts marketing debut sustainability-linked bond sale

June 29, 2021

Sustainability Ambitions Soaring at KCI

December 6, 2021

Chris Pratt explains where the White Spikes originated

July 3, 2021
Stop burning our rights! What governments and corporations must do to protect humanity from the climate crisis – World

Stop burning our rights! What governments and corporations must do to protect humanity from the climate crisis – World

Biden said to mull dropping corporate tax hike to fund jobs plan

Biden said to mull dropping corporate tax hike to fund jobs plan

Global investors pressure Asian utilities to cut emissions

Global investors pressure Asian utilities to cut emissions

Global inequity could derail path to net zero

Global inequity could derail path to net zero

What’s With A24’s Religious Obsession?

August 12, 2022

Governor Hochul Announces Completion of $16 Million Affordable Housing Development in Monroe County

August 12, 2022

EU ban on Russian coal enters into force

August 12, 2022

Immune system insights and Thai climate calculator: News from the College | Imperial News

August 12, 2022

Recent News

What’s With A24’s Religious Obsession?

August 12, 2022

Governor Hochul Announces Completion of $16 Million Affordable Housing Development in Monroe County

August 12, 2022

EU ban on Russian coal enters into force

August 12, 2022

Immune system insights and Thai climate calculator: News from the College | Imperial News

August 12, 2022

Recent News

What’s With A24’s Religious Obsession?

August 12, 2022

Governor Hochul Announces Completion of $16 Million Affordable Housing Development in Monroe County

August 12, 2022

EU ban on Russian coal enters into force

August 12, 2022

Browse by Category

  • Biodiversity
  • Climate Change
  • Energy
  • Filmmaking
  • Food
  • Investment
  • Management
  • Sustainability
  • Technology
  • Transportation

Follow Us

  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise

© 2021 Copyright Green Reporter

No Result
View All Result
  • Home
  • Biodiversity
  • Climate Change
  • Energy
  • Filmmaking
  • Food
  • Investment
  • Management
  • Sustainability
  • Technology
  • Transportation

© 2021 Copyright Green Reporter