The natural world is in crisis: We are losing biodiversity – the very fabric of life – at an alarming rate. Investors would do a poor job if they did not seek to preserve the fabric that is at the heart of building the future that people want and need.
Biodiversity is an essential ingredient to achieving the United Nations’ Sustainable Development Goals related to tackling poverty and hunger, preserving health and the climate, and enabling life in the cities and on the land. As such, it is of considerable value to economies, markets and investors.
Work on a new global biodiversity framework will be the focus on the 11-15 October UN Biodiversity Conference (COP15). It seeks to halt the loss of species and genetic diversity and the damage to ecosystems that are key to the well-being of humanity for generations to come.
The draft framework includes targets for 2030 such as conserving at least 30% of land and sea areas globally; reducing by 50% the rate of introduction of invasive alien species; reducing nutrients lost to the environment by at least half, and pesticides by at least two thirds, and eliminating plastic waste. It also seeks to address incentives that are harmful to biodiversity by at least USD 500 billion a year.
Here is an infographic with the approach of BNP Paribas Asset Management to being a sustainable and responsible investor, as laid out in our roadmap for providing long-term sustainable returns – our Global Sustainability Strategy – and our biodiversity roadmap entitled Sustainable by nature.
 Source: New Global Biodiversity Agreement: China to Host a Two-Part Summit on Nature https://www.cbd.int/doc/press/2021/pr-2021-08-18-cop15-en.pdf
Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients.
The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns.
Investing in emerging markets, or specialized or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.