A4S, with members of its Asset Owners Network, has produced a guide for chairs and trustees on step-by-step actions, with qualitative techniques, to identify and then manage specific nature risks, and invest in the opportunities. Written specifically for chairs and trustees, it considers the particular considerations within this community. 

Nature’s lack of visibility in our financial system means that it is being destroyed at a faster pace than any time in human history. And this has significant economic consequences, with half of our GDP dependent on nature. As custodians of billions of investments that reach all corners of the global economy, chairs and trustees of pension funds and other retirement vehicles have an important role to play to ensure an economy that operates within the ecological boundaries of our planet, serving a healthy society.

The impact of nature-related risks will be felt throughout pension fund portfolios – both directly and indirectly. These risks are easy to identify but hard to quantify – with limited nature-related data and complex metrics posing a significant barrier to action. Pension funds need to apply a more flexible and narrative approach to managing these risks and opportunities.

With examples from pension funds on how they are starting this journey, the A4S guidance includes five top tips:

1. Deepen your, and your board’s, understanding of nature-related risks and opportunities.
2. Get started by identifying one key risk and opportunity.
3. Manage the portfolio risks.
4. Enhance at both a micro- and macro-stewardship level.
5. Invest in the opportunities.

Learn more here