Caceis, the securities services provider, has launched a guide on biodiversity and nature risk, developed in partnership with the Zoological Society of London (ZSL).
Like climate risk, biodiversity and nature-related risks have emerged as crucial considerations for pension schemes, alongside climate risk.
Recognising the financial consequences these risks may pose, Caceis has developed a step-by-step approach to help pension trustees develop their own policies around biodiversity and nature risk.
The guide also offers a starting point for pension trustees to navigate the complex topic of biodiversity.
It offers practical insights and tips to trustees, covering essential aspects such as the current challenges of biodiversity risk, the definition of biodiversity, key drivers of biodiversity loss, risks to pension schemes, and how trustees can initiate the evaluation of biodiversity risk within their schemes. It also provides a list of pertinent questions that trustees can ask their asset managers.
Pat Sharman, country managing director, UK at Caceis, said: “While climate change has received significant attention, it is vital to acknowledge the equally important risk of biodiversity loss and nature degradation.
“We have partnered with the Zoological Society of London to delve deeper into the concepts of biodiversity risk and provide trustees with actionable guidance.”
The World Economic Forum’s Global Risk Report 2023 highlighted biodiversity and ecosystem collapse as the fourth most significant global risk over the next 10 years.
With increasing recognition of this threat, regulators and frameworks – like the Task Force on Nature Related Financial Disclosures – are putting a spotlight on biodiversity risk management.