Fidelity International has launched a sustainable biodiversity fund, to offer investors access to a global equity portfolio of companies contributing to the preservation of biodiversities.
The future of humanity is inextricably linked to the preservation of biodiversity, yet the World Economic Forum says the top three most severe risks on a global scale over the next 10 years are linked to its loss.
There is a huge potential for investment. The UN Environment Programme has estimated it will take $8.1 trillion of cumulative investment in nature-based solutions between now and 2050 to meet international biodiversity commitments.
That number increases significantly when the interlinked relationships with climate change is factored in, which requires a further $117 trillion in investment by 2050.
The current annual investment in biodiversity preservation is $133 billion, says Fidelity, while climate change spending was only $800 billion in 2021.
Velislava Dimitrova, portfolio manager of the fund at Fidelity International, said: “The world is now waking up to the urgent threat to biodiversity and natural capital.
“Biodiversity investment solutions are emerging as the largest investment megatrend in our generation and provides opportunities for investors. The theme is at an inflection point, and belatedly transforming from a neglected risk into a top priority.”