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 Limited (EOS) is a leading global engagement and stewardship team with expertise on topics including climate change, deforestation, sustainable food systems, and plastics.
Federated Hermes Limited 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 Limited 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
Chacun de nos six thèmes d’investissement alignés sur les ODD est composé de plusieurs sous-thèmes, qui sont directement liés à la biodiversité. Par exemple, le thème de la pollution des sols comprend la gestion des déchets, le recyclage du plastique et les produits de remplacement du plastique, ainsi que la gestion des produits chimiques dangereux.
We look for best in class companies, which help preserve or replenish biodiversity. For each company, we analyse financials, ESG factors, and complete a biodiversity assessment to determine company impacts and dependencies.
We seek to quantify this, where possible, through our impact database.
We will engage with portfolio companies on biodiversity and broader ESG themes. We are also focused on public policy engagement and advocacy related to biodiversity, including through being an active signatory of the Finance for Biodiversity Pledge.
Team
Gemma Corrigan
Head of Policy and ESG Integration, Federated Hermes Limited
Sonya Likhtman
Sectors: Consumer Goods, Financial Services
Ingrid Kukuljan
Head of Impact & Sustainable Investing
Product Information
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