Brunel Pension Partnership has identified biodiversity as a new priority focus for its broader responsible investment mandate.
The pool sets out this target in its 2022 Responsible Investment & Stewardship Outcomes Report alongside its existing themes such as cyber risk, circular economy and climate change.
“Investors and corporations must recognise that accounting for biodiversity related impacts is critical,” said Laura Chappell, chief executive officer at Brunel Pension Partnership.
“A final framework is coming down the line in 2023, so companies must start preparing for the impending reality of nature-related disclosure.”
Biodiversity has become an urgent theme, as research by the intergovernmental organisation IPBES indicates that one million species are at risk from extinction and that, without action, extinctions will accelerate.
This is not just rhetoric from scientists, but an investment risk. Research from Swiss Re shows that one fifth of countries face the risk of ecosystem collapse, and that 55% of global GDP is reliant on high functioning “biodiversity and ecosystem services”.
It is hoped the recent launch of the Taskforce on Nature-related Financial Disclosures (TNFD) may raise the profile of biodiversity and make it an investment priority.
The problem is a lack of standardised data for a very complex area. The report sets out Brunel’s strategy and its commitment to integrate biodiversity.
Other highlights of the report include:
- 38% female Boards of companies held in Brunel active portfolios – up from 34.4% in 2020
- 1,137 milestones EOS engaged with at 839 companies
- Completion of launches of all listed market funds with RI integration
- 1,322 company meetings at which votes were cast
- Launch of the Asset Owners Diversity Charter by the Asset Owner Diversity Working Group (co-chaired by Brunel’s head of stewardship, Helen Price)