Biodiversity finance - An introduction to impact investing

This article was written by Richard Mazzochi, Minny Siu, Leonie Tear and Claire Potter.

Climate action and biodiversity are intrinsically linked. The financial markets must address nature-related financial risks and capitalise on the opportunities that conservation and preservation of biological diversity and ecosystems provide.

Following the United Nations Convention on Biological Diversity and the G20 talks in October 2021 and the United Nations Climate Change Conference in November 2021, the attention of the international financial markets will diversify to incorporate the protection of biodiversity into the regulatory framework and supplementing taxonomies applicable to climate action and sustainability accordingly.

In this article, we examine the international biodiversity framework, why biodiversity decline is increasingly viewed as a systemic financial risk and how corporate biodiversity performance and the potential for off-sets and co-benefits will impact the financial markets.