ESG Investors Wake Up to Biodiversity Risk

ESG Investors Wake Up to Biodiversity Risk

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As environmental, social and governance investing has swept across the financial world, the “E” in ESG has become nearly synonymous with attempts to mitigate climate change. But while the climate crisis is one of the planet’s gravest problems, it is not the only environmental threat that needs tackling. Companies and investors are becoming increasingly concerned about the significant financial risks stemming from biodiversity loss and the destruction of natural ecosystems. “It’s ESG not ‘CSG’,” says Karen Degouve, head of sustainable business development at French bank Natixis. “It’s not ‘climate’, social and governance.” Damage to ecosystems including forests, grasslands and coral reefs — and the associated loss of biodiversity — could drain nearly $10tn from the global economy by 2050, according to the Global Futures report from the World Wide Fund for Nature (WWF), the conservation group.

Financial Times | ESG Investors Wake Up to Biodiversity Risk