Biodiversity loss is a major global challenge that not only threatens plants and animals, and contributes to climate change, but also directly impacts economies and societies – from food production to water resources, air quality and contributing to the spread of diseases. From lower production and higher costs, to supply chain disruption, biodiversity loss creates serious risks for companies.
More than half of global GDP ($44 trillion of economic value generation) is moderately or highly dependent on nature. Biodiversity loss represents a major systemic risk to economies and the global financial system.
Biodiversity loss is difficult to measure as the causes and impacts vary substantially. We support efforts to reverse the trend of biodiversity loss and work towards a biodiversity-positive situation. A key metric is deforestation, and one of our biodiversity ambitions is to support net-zero deforestation by 2030. We also aim to achieve water neutrality by 2030, meaning that companies operating in water scarce areas do not consume more water than nature can replenish.
As set out in our Biodiversity Strategy, we seek to understand where companies in our portfolios may be contributing to biodiversity loss through links to deforestation or water use in their own activities or supply chains. We track the percentage of investee companies that have policies, targets and strategies to reverse the trend of biodiversity loss.
With innovative biodiversity investment and stewardship activities, we encourage companies to adopt solutions that will restore ecosystems and reduce their contribution to biodiversity loss, land and sea change, resource and water over-exploitation, pollution and invasive species. We also help companies to set biodiversity targets, strategies and comply with certification schemes. For example, we’re working with companies to help them plan how to reduce their use of hazardous chemicals and to consider the biodiversity-related impacts of their suppliers and clients with new procurement and supplier policies.
Cardano’s biodiversity ambitions
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Overall aim
Reverse the trend of biodiversity loss and work towards biodiversity positive situation.
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Ambitions related to drivers of biodiversity loss
Zero net deforestation by 2030, water neutrality in water scarce areas by 2030, Net zero greenhouse gas emissions by 2050 at the latest, and transitioning to a circular economy by 2050.
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Operational approach
Monitor the increase of the percentage of investee companies that has formulated targets and strategies to reverse the trend of biodiversity loss.
Using technology to measure biodiversity
Measuring biodiversity is a challenging task. No single indicator shows species diversity all over the world. That’s why we’re exploring ground-breaking ways of collecting biodiversity data. From developing bioacoustics – a low-cost, non-invasive technology that combines sound recordings and AI to measure biodiversity levels – to using satellite data to monitor the expansion of palm oil plantations and quantify the resulting loss in vegetation and forests. The range of innovative biodiversity solutions includes regenerative agriculture techniques and landscape programmes, plant-based beef alternatives and financing targets.
We invest in innovative data to help with this assessment. For example, we’ve created a collaborative engagement effort called Satelligence where we use satellite data to track deforestation linked to palm oil production. We can trace palm oil production through supply chains to the public companies that may be end users of the palm oil.
Armed with this data and with the backing of this group of investors, we can effectively engage with large global food and consumer staples companies. We hope that they influence their suppliers to reduce deforestation and implement more sustainable farming practices through their procurement policies, leading to better biodiversity outcomes.
Our efforts do not stop there. We’re also sponsoring the development of bio-acoustic data to track the impacts on biodiversity of deforestation and the effectiveness of restoration efforts.
Using technology to measure biodiversity
Measuring biodiversity is a challenging task. No single indicator shows species diversity all over the world. That’s why we’re exploring ground-breaking ways of collecting biodiversity data. From developing bioacoustics – a low-cost, non-invasive technology that combines sound recordings and AI to measure biodiversity levels – to using satellite data to monitor the expansion of palm oil plantations and quantify the resulting loss in vegetation and forests. The range of innovative biodiversity solutions includes regenerative agriculture techniques and landscape programmes, plant-based beef alternatives and financing targets.
We invest in innovative data to help with this assessment. For example, we’ve created a collaborative engagement effort called Satelligence where we use satellite data to track deforestation linked to palm oil production. We can trace palm oil production through supply chains to the public companies that may be end users of the palm oil.
Armed with this data and with the backing of this group of investors, we can effectively engage with large global food and consumer staples companies. We hope that they influence their suppliers to reduce deforestation and implement more sustainable farming practices through their procurement policies, leading to better biodiversity outcomes.
Our efforts do not stop there. We’re also sponsoring the development of bio-acoustic data to track the impacts on biodiversity of deforestation and the effectiveness of restoration efforts.
The climate and biodiversity crisis is also a water crisis
The rapid depletion of the world’s water supplies is a major risk for investors and companies. Water neutrality – not consuming more water than nature can replenish – is key. We’re working towards water neutrality in our portfolios and support our clients in playing their part.
The climate and biodiversity crisis is also a water crisis
The rapid depletion of the world’s water supplies is a major risk for investors and companies. Water neutrality – not consuming more water than nature can replenish – is key. We’re working towards water neutrality in our portfolios and support our clients in playing their part.
We engage with policymakers, businesses, financial institutions, NGOs and consumer organisations to initiate or improve regulations, improve compliance monitoring and nudge consumers to change their consumption behaviour to reduce their impact on biodiversity.
Investor groups are lending weight to biodiversity stewardship, and we lead on investor engagement as part of the Principles for Responsible Investment’s Spring stewardship initiative and Nature Action 100, which both contribute towards the global goal of halting and reversing biodiversity loss by 2030.
We engage with policymakers, businesses, financial institutions, NGOs and consumer organisations to initiate or improve regulations, improve compliance monitoring and nudge consumers to change their consumption behaviour to reduce their impact on biodiversity.
Investor groups are lending weight to biodiversity stewardship, and we lead on investor engagement as part of the Principles for Responsible Investment’s Spring stewardship initiative and Nature Action 100, which both contribute towards the global goal of halting and reversing biodiversity loss by 2030.
Contact us
Kerrin Rosenberg
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CEO Investments Cardano UK
Keith Guthrie
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Head of Sustainability UK
Contact us
Kerrin Rosenberg
-
CEO Investments Cardano UK
Keith Guthrie
-
Head of Sustainability UK
