While many investors have started to identify and assess materiality, exposure and responses to nature-related issues, drawing from the framework outlined by the Taskforce on Nature-Related Financial Disclosures (TNFD), the topic is still relatively new.
We recognise that access to nature-related data can be challenging. It can be inaccurate, difficult to access, complex and not standardised. This is especially the case when seeking detailed commodity-related data at the country- or sector-level, which is either unavailable or in the development phase. Adding to this is the challenge of knowing what tools are available and when to use them, and alternate routes to conduct due diligence on investee companies.
To address these gaps and drawing from an approach we developed for our investment teams to use, we have launched a nature and biodiversity guide for investors to undertake nature-related company assessments and develop engagement approaches to biodiversity risks. Titled ‘Investors Can Assess Nature Now’, we focus specifically on freshwater and forests, two areas that we view as fundamental to both the global economy and the fight against climate change.
In our guide, we share a due diligence framework and the tools / resources to use for appraising and evaluating companies. We share an overview of the three critical steps we detail in our guide below.
