Integrating nature & biodiversity into investment – an asset owner perspective

Our new Impact Lens research report, commissioned by First Sentier MUFG Sustainable Investment Institute, investigates asset owners’ approaches to reporting on nature frameworks and data collection challenges.

Only members with restricted access (ie. academics, asset owners, government and regulatory, independent advisers/trustees and sponsoring employers) can view this article. Please login or join to view.

...

Pensions for Purpose’s nature and biodiversity report examines how asset owners are integrating nature-related considerations into their sustainability priorities, the frameworks they use, and the challenges they face in data collection.

Through interviews with 20 asset owners and managers across the UK, Europe, Asia-Pacific, North America and Latin America, their responses highlight although 85% are incorporating nature into their strategies, many asset owners and managers are still in the early stages of assessing risks and opportunities. Most schemes are yet to report formally on nature, often starting with broader sustainability reports before adopting frameworks like the TNFD. The report also presents best practice steps for pension schemes to gradually integrate nature into their strategies, emphasising education, board-level buy-in, and increasing existing ESG efforts.

Read the full report         Read the press release


DATA COLLECTION
We asked our interviewees 15 questions to gain insights into how asset owners are integrating nature and biodiversity into their sustainability strategies. Our aim was to understand the governance structures they have in place for managing nature-related issues and examine how asset owners identify and assess nature-related risks and opportunities in their current or planned strategies for reporting on these topics.

LEADING PACTICES
This Impact Lens report presents examples of best practice raised during our interviews with asset owners and managers. Based on the TNFD’s recommendations, these showcase demonstrable actions organisations can take to assess and disclose nature and biodiversity-related topics. As it is still early days for pension schemes to address these issues, each TNFD-recommended stage has a case study on asset owners’ approaches and unique journeys. Best practices are first steps schemes can take to start considering nature:

  • Deepen your understanding of the fundamentals of nature by educating decision-makers about the topic and mapping out risks, opportunities, impacts and dependencies.
  • Make the business case for nature and biodiversity and gain buy-in from the Board and management.
  • Start with what you already have, and leverage other work, like expanding ESG beyond climate to include nature.

Learn more here