- identification of sector exposures;
- dependencies and impacts;
- company prioritisation and assessments; and
- company engagements.
Accelerating industry practice
While still a nascent topic for many investors, perfect should not be the enemy of good.
By assessing nature-related issues, prioritising portfolio companies and engaging on material issues and gaps, investors will have new opportunities to understand risks and dependencies on nature and biodiversity.
It will uncover areas where investors can drive positive outcomes by sharing best practices with investee companies and linking them with solutions and innovative players.
Industry practice will continue to accelerate and evolve as more investors and companies work together and start to build knowledge in this area, measure impacts and dependencies, and disclose more information and data. They can start assessing nature now.
Joanne Lee is responsible investment specialist at First Sentier Investors
