Investor expectations: A set of corporate actions released to address the urgent nature crisis | Nature Action 100
The Launching Investor Group and Secretariat behind Nature Action 100, the first global investor engagement initiative to address the urgent nature crisis and its impact on long term shareholder value, released a set of timely and necessary corporate actions that will protect and restore nature and ecosystems and mitigate financial risk.
The initiative also unveiled the key sectors from which Nature Action 100 investors will engage companies. A final list of companies within these sectors will be unveiled later this year.
Following an investor webinar, Nature Action 100 is encouraging more investors to participate in the initiative. Investors interested in participating in Nature Action 100 can request more information here.
Investor expectations
The Investor Expectations for Companies outline key actions across six key focus areas: Ambition, Assessment, Targets, Implementation, Governance, Engagement. The expectations – which will be sent to a finalized list of focus companies later this year – will be the starting point for corporate engagement via the initiative.
Specifically, the expectations cover:
Ambition: Publicly commit to minimize contributions to key drivers of nature loss and to conserve and restore ecosystems at the operational level and throughout value chains by 2030.Assessment: Assess and publicly disclose nature-related dependencies, impacts, risks, and opportunities at the operational level and throughout value chains.Targets: Set time-bound, context-specific, science-based targets informed by risk assessments on nature-related dependencies, impacts, risks and opportunities. Disclose annual progress against targets.Implementation: Develop a company-wide plan on how to achieve targets. The design and implementation of the plan should prioritize rights-based approaches and be developed in collaboration with Indigenous Peoples and local communities when they are affected. Disclose annual progress against the plan.Governance: Establish Board oversight and disclose management’s role in assessing and managing nature-related dependencies, impacts, risks, and opportunities.Engagement: Engage with external parties including actors throughout value chains, trade associations, policy makers, and other stakeholders to create an enabling environment for implementing the plan and achieving targets.
Key sectors identified
Nature Action 100 aims to drive greater corporate ambition and action in eight key sectors that are deemed to be systemically important in reversing nature and biodiversity loss by 2030, a critical threshold scientists say is necessary to avoid more catastrophic climate change and the attendant economic consequences.
The eight sectors are:
Biotechnology and pharmaceuticalsChemicals, such as agricultural chemicalsHousehold and personal goodsConsumer goods retail, including e-commerce and specialty retailers and distributorsFood, ranging from meat and dairy producers to processed foodsFood and beverage retailForestry and paper, including forest management and pulp and paper productsMetals and mining. These sectors are major drivers of nature loss due to their large impacts on habitat loss, overexploitation of resources, and soil, water, and solid waste pollution.
The case for action
Biodiversity loss is the third most severe threat humanity faces, according to the World Economic Forum, and investors and companies play a critical role in addressing this threat.
With more than half of the world’s GDP reliant on nature and its services, depleting natural capital creates significant operational, regulatory, litigation, and reputational risk for investors and businesses alike, and negative economic repercussions globally. Hundreds of billions of global crop outputs are at risk annually from pollinator loss, posing operational risk for companies sourcing agricultural commodities. Some estimates, tens of billions of dollars in assets could be at risk of stranding over the next 5 to 10 years if companies continue to produce deforestation-linked commodities.
The Nature Action 100 Launching Investor Group includes representatives from AXA Investment Managers, Columbia Threadneedle Investments, BNP Paribas Asset Management, Church Commissioners for England, Domini Impact Investments, Federated Hermes Limited, Karner Blue Capital, Robeco, Storebrand Asset Management, and Christian Brothers Investment Services. The Nature Action 100 Secretariat and Corporate Engagement Work Stream is co-led by Ceres and IIGCC, and the Technical Advisory Group is co-led by the Finance for Biodiversity Foundation and Planet Tracker co-lead.
about
Nature Action 100 is a global investor engagement initiative focused on driving greater corporate ambition and action to reduce nature and biodiversity loss. Investors participating in the initiative will engage companies in key sectors that are deemed to be systemically important in reversing nature and biodiversity loss by 2030. Learn more: www.natureaction100.org.
All opinions expressed are those of the author and/or quoted sources. investESG.eu is an independent and neutral platform dedicated to generating debate around ESG investing topics.