Thirty investors representing over €6tn in assets under management, including Amundi and Aviva Investors, have backed the creation of a biodiversity impact measurement framework, allowing asset managers to measure their impact on the environment.
The framework is coordinated by AXA Investment Managers, BNP Paribas Asset Management, Sycomore Asset Management and Mirova.
It comes as governments and the private sector face intensified lobbying to move towards a greener economy post-Covid-19 crisis, from business and environmental groups.
The framework would constitute a set of tools, including a methodology based on a life cycle assessment that allows an asset manager to measures both negative and positive impacts an investment might have on biodiversity.
“In order to make real progress, it will be essential for the financial sector to address these issues,” the asset managers said in a 28 May statement.
The group said that 2020 and 2021 are crucial years of action for the environment and biodiversity. France will host the World Conservation Congress organised by the International Union for Conservation of Nature (IUCN) in Marseille in January next year.
“In order to make real progress, it will be essential for the financial sector to address these issues. In particular, the ability of investors to integrate impacts to nature and biodiversity into their risk assessments and research will serve as an important catalyst for private-sector action, with ripple effects throughout our economies,” the investors said.
Their initiative comes as the topic of biodiversity gains ground among the investment community. In September 2019, ShareAction, the UK’s biggest responsible investment group, published its first report on the topic, detailing how asset managers can play a role in biodiversity protection.
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