A global coalition of investors representing roughly $2.5trn in assets under management has urged governments to take ambitious policy and regulatory action to halt and reverse global biodiversity loss in a call to action at COP16 in Colombia.
Backed by 27 pension funds and asset owners, a statement has been signed by investors from Australia, Canada, Denmark, the Netherlands, Sweden, Switzerland, the United States and the United Kingdom, calling on governments to set ambitious national targets. These targets, the statement says, should include sectoral transformation plans; mandatory disclosure on nature for companies; and the development of financial mechanisms for nature.
Governments should also work to introduce regulation that addresses the five drivers of biodiversity loss, identified by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services as land use change and habitat loss; exploitation and overfishing; climate change; pollution; and invasive species and disease.
Leading this initiative are five pension investors: Sjunde AP-fonden, Caisse de dépôt et placement du Québec, the Church of England Pensions Board, HESTA and the Universities Superannuation Scheme.
“Left unaddressed, the risks from nature and biodiversity loss will continue to erode both investment returns and also investor confidence. Conversely, jurisdictions which put effective policies, regulations, targets and disclosure standards in place will build resilience and are likely to attract nature-aware capital, driven by long-term investors,” the statement reads.
The funds call for a “whole of government” approach to tackling the biodiversity crisis to protect investment returns and investor confidence.
“Long-term pension investors stand ready to support governments to take action to address biodiversity loss today and into the future,” it concludes.
Laura Hillis, director of climate and environment at the Church of England Pensions Board, commented: “The tragedy of biodiversity and nature loss will not be solved by waiting for the market in the absence of strong environmental policies and regulations. For us as stewards of long-term retirement savings, bold action from government holds the key to protecting long-term prosperity and wellbeing for our beneficiaries.”
Sandra Carlisle, head of responsible investment at USS, meanwhile, said: “USS is a long-term, responsible investor with a legal duty to invest in the best financial interests of our members and beneficiaries, so we can pay pensions long into the future. We recognise that loss of biodiversity and natural capital could pose a financial risk for companies, markets and economies. While we, as asset owners, understand the urgency of addressing nature and biodiversity loss, governments play a pivotal role in enabling a collective transition to a nature-positive economy. Meaningful progress can only be achieved through coordinated action. By setting ambitious targets and establishing regulatory frameworks that empower businesses, investors and communities to act, governments can enable all stakeholders to contribute effectively to this transition.”
