Biodiversity Equity
Investing for life and the planet.
Reasons to invest
We have reached a tipping point
Biodiversity offers critical mitigation against climate change
Biodiversity impacts the economy
The role of finance
1 WWF, Living Planet Report (2020).
2 Sources: IPBES Report (2019), EOS, Our Commitment to Nature (2021), WWF and ZSL, Living Planet Report (2020), Seven ESG Trends to Watch in 2021 | S&P Global (spglobal.com).
3 Global Canopy, The Little Book of Investing in Nature (2021)
The negative impacts of biodiversity loss pose a systemic risk to the global economy and we must stop taking nature’s permanence for granted. We believe now is a crucial moment to invest in the companies that help mitigate biodiversity decline.
Why Biodiversity Equity?
We aim to achieve long-term capital appreciation by investing in a concentrated portfolio of companies that are best in class and are providing solutions to avert loss of and support restoration of biodiversity.
We have extensively researched the major regional and global threats to biodiversity and have defined six investable themes: land pollution, marine pollution and exploitation, unsustainable living, climate change, unsustainable farming, and deforestation. Each of these themes has multiple sub-verticals that are aligned to specific UN Sustainable Development Goals (SDGs).
As well as investing in companies that offer solutions to the biodiversity crisis, we also engage with transitioning companies. EOS at Federated Hermes (EOS) is a leading global engagement and stewardship team with expertise on topics including climate change, deforestation, sustainable food systems, and plastics.
Federated Hermes is a pioneer in this field, with a strong record advocating and engaging around biodiversity. We are members of industry organisations including the Finance for Biodiversity Pledge, the PRI Sustainable Commodities Practitioners’ Group, the SPOTT Supporter Network, the Partnership for Biodiversity Accounting Financials, and the PRI plastics working group.
Our commitment to nature was outlined by EOS at Federated Hermes in their recent biodiversity white paper.
For more insights on the vital role investors play in limiting biodiversity loss, visit our biodiversity hub
How we invest
Team
Sonya Likhtman
Lead Engager, EOS
Ingrid Kukuljan
Head of Impact & Sustainable Investing, Federated Hermes Limited
Product Information
For the latest performance and vital information – including prices, key facts, identifiers and ratings
Our Purpose
To deliver Sustainable Wealth Creation
Like all our investment capabilities, Biodiversity Equity aims to deliver Sustainable Wealth Creation: the generation of wealth through investments that enrich investors, society and the environment over the long term.
Our business provides three equally powerful pathways to achieving this aim. Biodiversity Equity features in the Impact route.
Responsible, active investing for long-term performance.
- Financial objective
- Best-practice integration of ESG analysis and engagement insights
- Some capabilities may enforce exclusions that reflect Portfolio Managers’ investment views
- Delivery of sustainable outcomes through effective stewardship
Thematic and values-based approaches for sustainable outcomes.
- Financial and sustainability objectives
- Best-practice integration of ESG analysis and engagement insights
- Exposure to sustainability themes
- Exposure to ESG leaders and industry exclusions that reflect sustainability values
- Delivery of sustainable outcomes through effective stewardship
Mission-led investment strategies to create positive impact.
- Financial and impact objectives
- Best-practice integration of ESG analysis and engagement insights
- Focus on companies generating impact or undergoing positive transformation
- Some capabilities may enforce exclusions that reflect defined sustainability values, impact considerations, or both
- Delivery of sustainable outcomes through effective stewardship
Federated Hermes
Biodiversity Equity
