Biodiversity hub

The vital role investors play in limiting biodiversity loss

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NEW: Biodiversity Equity ​ Investing for life and the planet.

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.

Ingrid Kukuljan
Ingrid Kukuljan
Head of Impact & Sustainable Investing

Why biodiversity matters

Nature is critical for human existence, but it is under increasing stress – because of us.

0 %
the earth’s surface has been altered by human activity.1
0 %
fall in the global wildlife population between 1970 and 2016.2
0 m
animal and plant species are threatened with extinction.3
$ 0 tn
Cost to the global economy by 2050 due to loss of biodiversity.4
1 Source: 2019 Global Assessment Report on Biodiversity and Ecosystem Service.
2 Source: “Living Planet Report 2020,” published by the WWF in September 2020.
3 Source: United Nations, WWF, as at November 2020.
4 Source: Global Futures report from the World Wild Fund for Nature (WWF)

What is biodiversity?

Biodiversity is the variety of life found on earth from all sources, including terrestrial, marine, and other aquatic ecosystems and ecological complexes.

The main causes of biodiversity loss are deforestation, unsustainable agriculture and the illegal wildlife trade – and they are also contributing to the emergence of zoonotic diseases, such as Covid-19. Such is the impact of human activity on nature, scientists believe we are now entering a new geological epoch, the Anthropocene.

Federated Hermes Limited is proud to have become a member of the Natural Capital Investment Alliance, as part of HRH The Prince of Wales’ The Sustainable Markets Initiative

The NCIA aims to accelerate the development of Natural Capital as a mainstream investment theme and to engage the global $120tn investment management industry to mobilise this private capital efficiently and effectively for Natural Capital opportunities.
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Wildlife and the ecosystems – that is, all the plants and animals that live in a particular habitat – are vital to human life.

Soil organisms are essential for the supply of nutrients to plants as they help to break down organic matter.

Almost

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Soil organisms are essential for the supply of nutrients to plants as they help to break down organic matter.
Source: United Nations, WWF, as at November 2020

Investing for life and the planet

Federated Hermes Biodiversity Equity strategy

This strategy seeks to achieve long-term capital appreciation by investing in a concentrated portfolio of companies that are helping to preserve and restore biodiversity.

What can we expect from Part II of the UN Biodiversity Conference, COP15?

COP15 will convene governments from around the world to agree to a new set of goals for nature over the next decade through the Convention on Biological Diversity post-2020 framework process. The framework sets out an ambitious plan to implement broad-based action to bring about a transformation in society’s relationship with biodiversity and to ensure that, by 2050, the shared vision of living in harmony with nature is fulfilled.

COP15 presents an opportunity for transformative change to address the biodiversity crisis. To be successful, the Global Biodiversity Framework must highlight the necessary actions to be taken by all stakeholders, including the financial sector, to urgently halt and reverse biodiversity loss.

Sonya Likhtman
Sectors: Consumer Goods, Financial Services

Biodiversity podcast series

In this six-part podcast series we look to define biodiversity and establish its importance in a business and humanitarian context, exploring themes such as water conservation, deforestation, soil and agriculture, extinction and biosolutions.

Podcast 1 : Introduction

Find out about the true cost of biodiversity loss.
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Podcast 2 : Water

Is the water crisis solvable?
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Podcast 3 : Deforestation

Deforestation is a complex global problem, where long-term solutions are required..
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Podcast 4 : Solid and agriculture

What are the interactions between agriculture, soil, livestock farming and biodiversity?
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Podcast 5 : Extinction

What are the causes of species extinction and the role of finance?
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Podcast 6 : Biosolutions

We look to the future and the solutions being worked on to address biodiversity loss.
Listen

Reflecting on biodiversity at COP26

We are proud to be one of the first to sign the commitment to end deforestation, using active ownership and stewardship to catalyse actions that will eliminate commodity-driven deforestation from your portfolios by 2025.

Saker Nusseibeh
Saker Nusseibeh, CBE
CBE – CEO, Federated Hermes Limited

Communities of different animal species perform vital functions within ecosystems. For example, animals can provide natural pest control.

The increased exploitation of wildlife, habitat conversion and land use bring humans into ever-greater contact with wildlife, which increases the risk of zoonotic diseases. About

0 %

of emerging infectious diseases come from animals.

Healthy forests help to stabilise our climate, clean the air, and guarantee water supply. About

0 bn

people depend on forests for their livelihood.

Deforestation decreases carbon absorption, destroys habitats and puts ecosystems at risk. Each year,

0 m

hectares of forest are destroyed.

Source: United Nations, WWF, as at November 2020.

Engaging to reduce biodiversity loss

EOS, our stewardship service, engages with companies around the globe, urging them to put in place strategies that are consistent with the Paris Agreement goals, alongside goals and targets aligned to limit biodiversity loss.