Impact investment

A new wave of investors, finance providers and asset managers is looking to both reduce biodiversity-related risk in investments and deliver demonstrable positive outcomes for biodiversity. This trend in greening finance and financing green will reinforce over the coming years as the post-2020 Global Biodiversity Framework unfolds in the wake of COP15, and as nature-related disclosures initiatives such as the Taskforce on Nature-related Financial Disclosures (TNFD) gain momentum on the global market.

To support a sustainable investment strategy, or deliver on positive impact targets at project or operation level, organisations will need to measure and report on their impacts. To achieve this, we apply a wide range of metrics, tools, and approaches for assessing the biodiversity impacts of investments and portfolios. From accelerator funds with nature positive targets to climate-focused investments delivering biodiversity co-benefits, we identify the right processes to manage biodiversity risks and opportunities.

Services we provide to the finance sector include:

• Investment screening and materiality assessment. A first step in understanding exposure to biodiversity risks and the scale of potential opportunities is a rapid materiality assessment. We identify the most relevant materiality criteria, appropriate tools and processes to assess investments and portfolios. Our full benchmarking, footprinting or performance-based assessments provide critical insight into on the ground risks and the biodiversity opportunities of potential investments.
• Biodiversity-inclusive strategy and KPIs. Embedding biodiversity at a strategic level is critical for investors to understand where and how biodiversity is material to businesses. Whether aligning with financial performance standards or creating bespoke exclusion criteria, our approach enables the assessment of biodiversity risk, mitigation of impacts and quantification of gains, including target setting and KPIs to track progress. 
• Data and metrics. For finance to have positive effects on nature, investors need robust and auditable data and metrics. While a lack of applicable data is often cited as a significant barrier to tackling biodiversity risk, our experience shows the data exists, and the barrier is identification and integration of appropriate data stacks for use in reporting. As specialists in measuring and quantifying biodiversity, we guide investors through what biodiversity data can be used and where, and the implications of potential investments on nature.
• Reporting and disclosure. Fund providers need to be aware of emerging sustainability taxonomies and non-financial reporting and disclosure requirements around nature risk. We help our clients successfully capture and analyse biodiversity-related information to measure, track and disclose their impacts and dependencies on nature.
• Biodiversity co-benefits of natural climate solutions. By applying a biodiversity lens to climate initiatives, we help companies to assess the potential Biodiversity Return on Investment per $, per tCO2e, or for different projects and project scenarios – stacking climate-nature co-benefits from the same investment opportunities.