A healthy and diverse ecosystem is important to humans’ well-being as well as to the economy. Its significance is addressed in an OECD report, which starts with the dramatic statement: “Biodiversity loss is among the top global risks to society. The planet is now facing its sixth mass extinction, with consequences that will affect all life on Earth, both now and for millions of years to come.” 1
Moreover, the lack of biodiversity could be one of the major reasons for infectious disease outbreaks: up to three-quarters of newly emerged infectious diseases were transmitted from other animals through wildlife exploitation activity like hunting, capture, and trade. This in turn endangers productivity, supply chains, business activity in the global economy, and even lives of millions of people, as the society may have experienced with the example of COVID-19. 4
The diversity of plants and animals is clearly linked to our planet’s future. With at least 40% of the world’s economy derived from biological resources, companies and investors will have to take consider our natural resources as natural interdependencies are under attack by human intervention. 5 Recent studies even find that USD 44 trillion of value – which is more than 50% of the global GDP – depends on nature’s services. 4
Companies and funds with strong sustainable initiatives that promote and preserve biodiversity are expected to be the winners of a structural shift. Investors are taking climate issues, as well as the carbon footprint of their portfolio more and more into consideration. Environmentally friendly investing is not only important from a moral or regulatory perspective but should also be factored-in as an element of proper risk management. Companies, as well as investors, are increasingly aware of the optics and the involved risks their actions generate. Transparency concerning the way in which businesses are conducted opens new opportunities to be leveraged.
At Climate Future Capital we will strive to engage and collaborate with all stakeholders to promote and improve the biodiversity and ecological health of our projects. Regular monitoring will ensure that investments are having a tangible real world impact that can be measured beyond financial return. This is our commitment to SDG Goal 15, Life on Land.