GRI Standard—The GRI launched a consultation to update its Biodiversity Standard. The exposure draft, which is open for public comment until February 28, 2023, is summarized in this release. See the GRI’s FAQs on the standard.
Global Biodiversity Framework—This article from ESG Investor provides an overview of the 10-year post-2020 Global Biodiversity Framework, which was finalized and adopted at the UN Biodiversity Conference (COP 15) in Montreal, Canada this week. The YouTube video on this page defines the widely used acronyms, core concepts, and aims underlying the framework and the parties involved.
See these articles: “Historic biodiversity agreement reached at UN conference” (AP News), “COP15 deal should make financial regulators ‘sit up and listen’ – Schroders” (RI), “International Agreement Reached at COP15 to Halt Biodiversity Loss, Protect Ecosystems” (ESG Today), and “Understanding the Value of Nature” (ERM), and Business for Nature’s report: “A Business Guide to the UN Convention on Biological Diversity COP 15.”
Nature Action 100—ESG Investor’s “’Sparse’ Data a Key Driver of Nature Action 100” elaborates on the new Climate Action 100+-modeled, institutional investor “Nature Action 100” initiative that we reported on last week (see “Institutional Investors Launch Nature and Biodiversity Initiative”). Ceres, which co-founded and participates in the coordination of the Climate Action 100+ initiative, is also involved in coordinating Nature Action 100, along with the European Institutional Investors Group on Climate Change, Finance for Biodiversity Foundation, and Planet Tracker.
ICGN initiative—The institutional investor-led International Corporate Governance Network published this statement in advance of COP 15 setting forth its expectations and recommendations for investors, companies, auditors, and governments to address nature and biodiversity degradation.
Among other things, investors and companies are called on to publicly commit to science-based targets to support the stabilization of biodiversity loss by 2030 and ecosystem restoration by 2050. Investors are further tasked with incorporating these objectives into their stewardship activities (i.e., investment decision-making, company monitoring, engagement, and proxy voting) and holding portfolio company directors accountable. Additional recommendations aimed at companies relate to disclosure, board competence and oversight, and integration of pertinent performance metrics into executive pay.
Roadmaps to Nature Positive initiative—The World Business Council for Sustainable Development’s (WBCSD) Roadmap to Nature Positive is a corporate-supported initiative aimed at facilitating the above-described Global Biodiversity Framework in concert with the TNFD and Science Based Targets Network. The draft guidance for companies (available for comment through January 31) includes actions for companies—accompanied by value chain-specific objectives—to assess, commit to, and disclose performance on nature-related information, and transform their systems and other areas of influence to promote a nature-positive planet by 2030. See the WBCSD’s release.
Nature risk management & disclosure—This report: “Valuing Nature: The case for nature-related assessment and disclosure” from SustainAbility Institute by ERM and the Capitals Coalition is aimed at helping companies identify, manage, govern, and disclose nature-related risks and opportunities in alignment with the Taskforce on Nature-related Financial Disclosures (TNFD), which is slated to launch in September 2023. See our prior reports on the TNFD here and here.
Asset manager policies—Morningstar’s timely report: “COP15: A Turning Point for Investor Approaches to Biodiversity” reveals the results of its analysis of the engagement and voting policies of 25 US and European asset managers, including the five largest by fund assets (Vanguard, BlackRock, Fidelity Investments, Capital Group, and State Street) on biodiversity preservation and risks. The report includes relevant excerpts from covered asset managers’ engagement priorities, stewardship policies and reports, position papers, comment letters, policy statements, voting guidelines and policies, and other relevant publications.
Biodiversity screening—MSCI announced at COP 15 its launch in early 2023 of biodiversity and deforestation screening metrics for investors.
- Biodiversity-Sensitive Areas Screening Metrics enable investors to identify companies that have physical assets located in areas of high biodiversity relevance, such as healthy forests, deforestation fronts, or species-rich areas.
- Deforestation Screening Metrics indicate companies exposed to deforestation-related risks, including those that may directly or indirectly (via their supply chains) contribute to deforestation. This could be a result of direct operations in areas of risk, such as the tropics, or by the production or reliance on commodities considered key drivers of deforestation, including palm oil, soy, beef, and timber.
MSCI’s recent report: “ESG and Climate Trends to Watch for 2023,” which we reported on in last week’s Society Alert (“ESG Hot Topics: The Next Frontier) addressed (among other topics) deforestation regulatory developments and company preparedness as measured by deforestation policy disclosures. See “MSCI Launching Tools to Identify Companies at Risk on Biodiversity, Deforestation” (ESG Today).
See “Wachtell Lipton’s Nature as an Asset: The Coming Wave of "Natural Capital" and Biodiversity Shareholder Activism and Stewardship Pressure on Boards of Directors” and additional resources on our new Nature/Biodiversity page.
This post first appeared in the weekly Society Alert!