This analysis examines how more than 800 global institutional investors are acting on nature and biodiversity loss and where policy can unlock more action.
It also provides recommendations that can help policymakers unlock greater private finance and reduce nature-related risks to economies and financial systems, accelerating the transition to a global economy that safeguards nature and long-term prosperity
Key Takeaways
Institutional investors have a critical role to play in meeting global biodiversity goals. Nature and biodiversity loss is a material, and systemic financial risk. Managing financially material nature-related risks falls within the scope of investors' fiduciary duties.
Investors are stepping up and taking action. They are assessing and disclosing nature-related risks, integrating biodiversity into investment policies, engaging the companies they invest in, and advocating for policy reform--all actions in line with their mandates and fiduciary duties. More than 400 institutional investors with $60 trillion in assets under management have engaged over 300 companies. Over 160 investors have advocated for enabling policy, including the EU Deforestation Regulation.
Voluntary action alone cannot close the gap. Corporate progress is not moving at the pace the challenge requires and policy gaps limit what the private sector can accomplish. Inconsistent data, a lack of coherent policy, and misaligned economic incentives remain the main barriers.
Policy actions are needed to further enable investor contributions. To scale capital, investors need National Biodiversity Strategies and Action Plans they can rely on, regulatory certainty and coherence across jurisdictions, comparable disclosure data, public finance and subsidies that reward rather than punish nature-positive activity, and structured dialogues to inform policy design.
This analysis was conducted by Ceres in collaboration with Asia Investor Group on Climate Change (AIGCC), FAIRR Initiative, Finance for Biodiversity Foundation, Investor Policy Dialogue on Deforestation (IPDD), Principles for Responsible Investment (PRI) Spring Initiative, Rainforest Foundation Norway, and World Benchmarking Alliance.