Investing in a Biodiversity-Integrated Manner

The report addresses the gap between investor concern for biodiversity loss and the lack of tangible targets or metrics for integration. It argues that biodiversity risks are 'green swans' that can be managed by expanding ESG frameworks, adopting 'double materiality' (considering both financial risk and environmental impact), and utilizing emerging measurement tools like Mean Species Abundance (MSA). The document proposes a 'biodiversity-efficient frontier' to optimize risk-return-impact profiles and highlights innovative financing mechanisms such as Natural Asset Companies (NACs) and blended finance for nature-based solutions.

• There is a significant gap between investor concern and action; while 84% of surveyed asset managers and owners expressed high concern over biodiversity loss, 91% lacked biodiversity-related targets.
• Biodiversity loss represents a material financial risk, with over 50% of global GDP moderately or highly dependent on ecosystem services.
• Current biodiversity funding is insufficient, with an estimated annual need of $824 billion to protect and restore nature, while only $140 billion is spent globally each year.
• Investors are encouraged to move beyond simple equity tilting and instead employ stewardship and policy advocacy, as simply avoiding 'risky' companies will not solve the problem.
• The report proposes a 'biodiversity-efficient frontier' where investors maximize returns and positive biodiversity impact while minimizing risks and negative impacts, treating nature-related impact as a third dimension alongside risk and return.
• Several measurement tools are currently used by investors, including Mean Species Abundance (MSA), the Species Threat Abatement and Recovery (STAR) metric, and the Biodiversity Intactness Index (BII), though consensus on their effectiveness remains limited.
• Innovative financial instruments are emerging to close the biodiversity financing gap, including Natural Asset Companies (NACs) that maximize ecological performance and blended finance projects like the Coral Reef Fund and Forest Resilience Bond.

APA

World Economic Forum (2022). Investing in a Biodiversity-Integrated Manner. https://www3.weforum.org/docs/WEF_Investing_in_a_Biodiversity_Integrated_Manner_2022.pdf

Chicago

World Economic Forum. Investing in a Biodiversity-Integrated Manner. 2022. https://www3.weforum.org/docs/WEF_Investing_in_a_Biodiversity_Integrated_Manner_2022.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Investing in a Biodiversity-Integrated Manner |date=June 2022 |url=https://www3.weforum.org/docs/WEF_Investing_in_a_Biodiversity_Integrated_Manner_2022.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2022investing, author = {{World Economic Forum}}, title = {{Investing in a Biodiversity-Integrated Manner}}, institution = {World Economic Forum}, year = {2022}, month = jun, url = {https://www3.weforum.org/docs/WEF_Investing_in_a_Biodiversity_Integrated_Manner_2022.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }