Nuveen's latest research also highlights the approaches insurance investors can take for nature-positive investing. Different outcomes for net zero and nature positive:
- Nature exposure cannot be reasonably mitigated through an approach that seeks to exclude or underweight specific sectors.
- Nature and green house gas emissions exposures are aligned in the majority of circumstances, but an emissions-only strategy will have more limited benefits for nature.
- Nature creates overlapping dependencies across economic sectors that if nature were to become more priced-in to markets would undermine traditional diversification strategies.
Actionable insights for insurers:
- Prioritise three areas: use of natural resources, land use change and waste/pollution generation.
- Apply a science-based approach to nature positive investment.
- Consider fixed income as a first step in nature based investing.
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