Skip to content
ESG Clarity

ESG Clarity

ESG Investing News and Analysis

subscribe to newsletters log in EU US APAC
  • News
    • All News
    • In brief
    • Regulation
    • Company
      • People moves
    • Macro
    • Diversity & inclusion
    • Products
      • Launch stream
      • Passives
      • Equities
      • Fixed income
      • Alternatives
      • Multi-asset
  • Analysis
    • All Analysis
    • Interviews
    • Opinion
    • Research
    • Thematic
  • Video and Podcast
  • Data
    • RRI
    • Net Zero Database
  • COP
  • Magazine
  • Events
    • ESG Clarity Awards
    • Responsible Pathway
  • About us
    • Contact us
    • ESG Clarity Committee
  • ESG profiles
  • ESG Clarity Intelligence
  • News
    • All News
    • Regulation
    • Company
    • Macro
    • Diversity & inclusion
    • Products
  • Analysis
    • All Analysis
    • Interviews
    • Opinion
    • Research
    • Thematic
  • Video
  • COP
  • Events
    • ESG Clarity Awards Asia
    • Global ESG Summit
  • ESG profiles
  • ESG Clarity Intelligence
  • About us
    • Contact us
    • ESG Clarity Committee
  • News
    • In brief
    • Latest launches
    • People moves
  • Analysis
    • All Analysis
    • Interviews
    • Opinion
    • Research
  • Video and podcast
  • Data
    • RRI
    • Net Zero Database
  • Events
    • InvestmentNews ESG Summit & Film Festival
    • Global ESG Summit
  • About us
    • Contact us
    • ESG Clarity Committee
  • ESG profiles
  • News
    • All News
    • In brief
    • Regulation
    • Company
      • People moves
    • Macro
    • Diversity & inclusion
    • Products
      • Launch stream
      • Passives
      • Equities
      • Fixed income
      • Alternatives
      • Multi-asset
  • Analysis
    • All Analysis
    • Interviews
    • Opinion
    • Research
    • Thematic
  • Video and Podcast
  • Data
    • RRI
    • Net Zero Database
  • COP
  • Magazine
  • Events
    • ESG Clarity Awards
    • Responsible Pathway
  • About us
    • Contact us
    • ESG Clarity Committee
  • ESG profiles
  • ESG Clarity Intelligence
  • News
    • All News
    • Regulation
    • Company
    • Macro
    • Diversity & inclusion
    • Products
  • Analysis
    • All Analysis
    • Interviews
    • Opinion
    • Research
    • Thematic
  • Video
  • COP
  • Events
    • ESG Clarity Awards Asia
    • Global ESG Summit
  • ESG profiles
  • ESG Clarity Intelligence
  • About us
    • Contact us
    • ESG Clarity Committee
  • News
    • In brief
    • Latest launches
    • People moves
  • Analysis
    • All Analysis
    • Interviews
    • Opinion
    • Research
  • Video and podcast
  • Data
    • RRI
    • Net Zero Database
  • Events
    • InvestmentNews ESG Summit & Film Festival
    • Global ESG Summit
  • About us
    • Contact us
    • ESG Clarity Committee
  • ESG profiles
subscribe to newsletters log in
EU US APAC

Enjoying our articles?

Sign up to receive ESG Clarity newsletters

Sign up now X
 

Do EMs offer biodiversity engagement opportunities?

Trunks of trees cut and stacked in the foreground, green forest in the background with sun rays

by ESG Clarity 17 Jun 2021

Verisk Maplecroft outlook explores biodiversity opportunities in countries with foreign debt and natural assets

As the Taskforce on Nature-related Financial Disclosures (TNFD) continues to develop, investors can find opportunities in indebted countries and natural assets, but be warned – lack of data may be masking poor governance.

Earlier this month, the TNFD of around 30 members has today announced the appointment of two co-chairs – David Craig, CEO of Refinitiv and group leader of data and analytics division at London Stock Exchange Group, and Elizabeth Maruma Mrema, executive secretary of the UN Convention on Biological Diversity – and committed to delivering a framework for reporting and acting on nature-related risks by 2023.

In light of this “funds and international creditors have an opportunity to drive conservation improvements by tying finance to ESG milestones”, a recent Verisk Maplecroft outlook, Biodiversity is the new ESG elephant in the room, said.

Ongoing debt issues in countries such as Lebanon, Sri Lanka, Angola and Zambia offer potential opportunities for engagement, as well as a number of other countries highlighted in the graph below, it added.

“Those countries furthest away from the 2020 Aichi Biodiversity goal of protecting at least 17% of terrestrial areas and inland waters could find themselves targeted by sovereign ESG investors, while operators in those nations must be aware of the potential for safeguarded areas to expand. Investor attempts to sway Brazil’s Bolsonaro administration, which emphasises economic development above environmental protections, have gained access to senior policymakers, but failed to rein in destruction of the Amazon. However, governments could soften their positions if access to finance were to become a problem.”

Meanwhile, the outlook said investment in emerging market natural assets is already attracting attention, but lack of data may mask the biodiversity risks actually present.

“Corruption and misrule provide the cover for natural capital value chains – such as timber or livestock, or crops like soy and palm oil – to destroy nature largely unimpeded and potentially out of sight of certification agencies.”

Emerging and frontier markets where biodiversity is at risk and corruption is widespread include Brazil, Indonesia and Malaysia – all major exporters of agricultural commodities – as well as Peru, whose economy hinges on mining, and Mexico, where AMLO is stepping up oil and gas expansion.

Read More: biodiversity, Emerging Markets, Engagement, Governance, Natural Resources, Opportunities, Risk, Taskforce on Nature-related Financial Disclosures
Avatar

Natasha Turner

Natasha is global deputy editor at ESG Clarity, part of the Bonhill Group, and has been a financial journalist for six years. She has been shortlisted for Story of the Year and Investment Journalist of... More by Natasha Turner

Related Stories

Regulation

Passives’ Article 9 market share shrinks in Q4 shake-up

30 Jan 2023

Research

Gap between net-zero pledges and action at many companies

30 Jan 2023

Products

Global sustainable flows bounce back in Q4

26 Jan 2023

Research

Older generations ‘bridge gap’ to embrace impact investing

25 Jan 2023

Related Stories

Regulation

Passives’ Article 9 market share shrinks in Q4 shake-up

30 Jan 2023

Research

Gap between net-zero pledges and action at many companies

30 Jan 2023

Products

Global sustainable flows bounce back in Q4

26 Jan 2023

Research

Older generations ‘bridge gap’ to embrace impact investing

25 Jan 2023

Bonhill Group plc provides news, events & research aimed at wealth managers, investment IFAs and other professional fund pickers and asset allocators in the UK, Europe, Middle East and Asia Pacific regions. All rights reserved.

The Bonhill Network

  • Bonhill Group plc
  • Portfolio Adviser
  • International Adviser
  • Expert Investor
  • Fund Selector Asia
  • InvestmentNews

Further Information

  • Privacy Policy
  • Cookie Policy
  • Terms & Conditions

Contact us

  • 0207 7638 6378

Address

  • Bonhill Group plc
  • 29 Clerkenwell Road
  • London
  • EC1M 5RN

A part of the Bonhill Group