At the PLSA Investment Conference in Edinburgh on 6 June, CACEIS, the securities services sustainable governance partner of choice, is launching a guide on biodiversity and nature risk, developed in partnership with the Zoological Society of London (ZSL). Like climate risk, biodiversity and nature-related risks have financial consequences to pension scheme investments. The guide aims to educate pension trustees on the significance of biodiversity risk in their scheme’s investment portfolios.
The guide forms part of CACEIS Academy, which is an education platform set up for pension scheme trustees and asset management fund boards.
Biodiversity and nature-related risks have emerged as crucial considerations for pension schemes, alongside climate risk. Recognising the financial consequences these risks may pose, and with a purpose to provide education, CACEIS has developed a step-by-step approach to help pension trustees develop their own policies around biodiversity and nature risk.
The guide also offers a starting point for pension trustees to navigate the complex topic of biodiversity. It offers practical insights and tips to trustees, covering essential aspects such as the current challenges of biodiversity risk, the definition of biodiversity, key drivers of biodiversity loss, risks to pension schemes, and how trustees can initiate the evaluation of biodiversity risk within their schemes. Additionally, it provides a list of pertinent questions that trustees can ask their asset managers.
"We are committed to delivering educational resources for pension schemes and trustees," said Pat Sharman, Country Managing Director, UK at CACEIS. "While climate change has received significant attention, it is vital to acknowledge the equally important risk of biodiversity loss and nature degradation. We have partnered with the Zoological Society of London to delve deeper into the concepts of biodiversity risk and provide trustees with actionable guidance."
The World Economic Forum's Global Risk Report 2023 highlighted biodiversity and ecosystem collapse as the fourth most significant global risk over the next ten years. With increasing recognition of this threat, regulators and frameworks like the Task Force on Nature Related Financial Disclosures are putting a spotlight on biodiversity risk management. The recently concluded United Nations Biodiversity Conference (COP 15) and the upcoming launch of the Task Force's new framework in September 2023 further emphasise the importance of addressing biodiversity loss.
"As asset owners and investors, the finance sector has a significant responsibility in mitigating the biodiversity crisis," states the Zoological Society of London in the foreword. "This guide from CACEIS provides a handy starting point for the pensions industry, demystifying the complex topic and providing a clear framework to approach the issue."
Pat Sharman, Country Managing Director, UK, CACEIS is available for further comment and will be available for interviews at the PLSA conference in Edinburgh from 6-8 June 2023.