Extended Viewer
An Investor's Guide to Nature and Biodiversity Risks and Impacts
Dec 15, 2023
For many investors, the biggest challenge around accounting for biodiversity risk is figuring out where to start. Biodiversity loss has many drivers with many variables, and proper analysis requires asset-location data, an extra layer of complexity. Without standardized metrics to answer key questions, investors are often forced to rely on emerging conceptual metrics that can yield widely differing results.
This guide, its checklist and our Nature and Biodiversity Metrics Framework are designed to help investors start identifying which questions to ask and which metrics to consider as they begin incorporating biodiversity into their investment process.
MSCI Nature and Biodiversity Metrics Framework
Source: MSCI ESG Research, December 2023
Download report
Research authors
- Arne Philipp Klug, Vice President, MSCI Research
- Sylvain Vanston, Executive Director, MSCI Research
- Mark Jwaideh, Senior Associate, MSCI ESG Research
Nature and Biodiversity
Biological diversity is rapidly declining — and becoming a material risk to investors. That means they need advanced tools to measure impact and manage risk.
Learn moreBiodiversity and Business: Are Companies Aware of Nature’s Risks?
Although corporate disclosures around biodiversity- and nature-related risk vary, with growing stakeholder awareness and initiatives such as the TNFD framework, we may see a move toward more standardized disclosures that could help investors better assess these risks.
Read moreBiodiversity Funds: Welcome to the Jungle
Biodiversity is the new kid on the block in sustainable investing, and a lack of harmonization makes it a jungle out there. We assessed how biodiversity-labeled and biodiversity-related funds differed in sector and revenue exposure and performance.
Explore more