Biodiversity loss now competes with climate change as the principal challenge for sustainable finance. However, this crisis has not been addressed with the same urgency by regulators, governments, corporations, or the financial sector. Franklin Templeton Investments believe that in 2022, efforts focused on climate change should extend to address the biodiversity challenge, since the two are interconnected. At the 2021 COP26 event, the declaration signed to save and restore our planet’s forests cements the importance of biodiversity as a twin crisis. Commitments from the public and private sectors to curb biodiversity, as well as the dependencies and impact of business sectors on nature, affirms to us that it must be factored into portfolios.
In this series of articles, 'Facing up the Biodiversity Challenge', Franklin Templeton Investments aim to demonstrate the journey financial institutions are taking to commit to preserve biodiversity in the upcoming years. Each article will focus on different aspects of addressing biodiversity loss. The goal is to develop understanding of the materiality of biodiversity and the challenge of its loss for financial institutions.
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