PI Partnership – Pictet Asset Management
BIODIVERSITY: WHY INVESTORS SHOULD CARE
Laurent Ramsey is managing partner of Pictet Group
For too long, businesses and investors have ignored the threat biodiversity loss presents to human prosperity and growth.
Professor Beatrice Crona is the Stockholm Resilience Centre’s deputy science director and senior scientific adviser to the FinBio programme
The past 30 years have seen a bigger improvement in human prosperity than all of the past centuries combined. We have built more roads, buildings and machines than ever before. More people are living longer and healthier lives and access to education has never been better. However, such progress has come at a great cost. As humanity has thrived, nature has suffered. Humans are driving animal and plant species to extinction and destroying their habitats to feed an ever-increasing population.
As a steward of global capital, the financial industry is uniquely positioned to help build an economy that works with, rather than against, nature. It can facilitate a nature-positive transi- tion, by transforming the way it allocates capital and develop- ing new models to price biodiversity risks and opportunities more accurately. The finance industry must add its heft to the global effort to reduce the damage, while also enhancing nature’s recovery. All of this explains why Pictet Asset Management has become a founding partner in a new four-year global research pro- gramme geared to helping the financial industry develop strat- egies to protect natural capital and halt biodiversity loss. The Finance to Revive Biodiversity (FinBio) programme, which will be overseen by the Stockholm Resilience Centre at the University of Stockholm, aims to develop valuable research that should help the finance industry transform current prac- tices – which reward growth at the expense of biodiversity – to a new model which accurately captures – and attaches an eco- nomic value to – the nature-positive quality of a business. Funded by the Swedish Foundation for Strategic Environmen- tal Research (Mistra), the programme will break new ground by bringing together a diverse consortium of academic researchers that rarely interact, as well as financial-sector part- ners. The consortium has set itself ambitious targets. The first task is to translate biodiversity and natural capital data into metrics that asset managers and asset owners can under- stand and use.
The second objective is to establish a financial framework that will facilitate the development of a new class of nature-aligned securities, capital that can be harnessed to achieve biodiversity goals and build a genuinely sustainable economy.
20 February 2023 portfolio institutional roundtable: Biodiversity
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28
