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1. Investors Grapple With Complexities of Biodiversity Corporate Finance – News Showing 財金二 田皓宇 410515020

2. content Background analysis Problem Solution Conclusion Reference

3. Background “Irreversible consequences for the environment, humankind, and economic activity, and A permanent destruction of natural capital.” That is how the World Economic Forum characterises biodiversity loss in its 2022 Global Risks Report. WHAT ARE INVESTORS WORRIED ABOUT?

4. Background About 1mn animal and plant species are at risk of extinction , according to the UN. “That [risk] exposure is rapidly becoming more apparent as we degrade the natural system because we’re farming more, using more water and cutting down forests,” says David Craig, co-chair of the taskforce on nature-related financial disclosures ( TNFD )

5. Analysis You may have a question... Why biodiversity is important? Biodiversity loss threatens the availability of ecosystem services, on which economic activities depend (e.g., a joint study by De Nederlandsche Bank and PBL Netherlands Environmental Assessment Agency reveals that the financial sector’s exposure to products that depend on pollination amounts to € 28 billion).

6. Analysis

7. Problem “Many of the business implications of loss of biodiversity are still unclear ,” says G reg W aters If agreeing on measurement and disclosure methods for carbon reduction in investment portfolios has been difficult , tracking industry’s impact on everything from oceans and forests to insect populations looks far tougher .   “Given that financial institutions are dependent on quality disclosure from the companies in their portfolio, it seems we are far off from the finance sector itself providing meaningful disclosures in this area,” says Waters.

8. Solution TNFD’s framework, whi ch is developing a reporting framework to help companies and investors include biodiversity in their decision making. Finance for Biodiversity Pledge, which was launched in 2020, initiated by a group of 26 financial institutions calling on global leaders and committing to protect and restore biodiversity through their finance activities and investments T he investor-focused standards developed by the sustainability accounting standards board can be used to identify the risks and opportunities that are most relevant to different sectors.

9. Conclusion Although measuring biodiversity is complex , argues de horde, this should not prevent investors from taking action. “You often hear that there are no tools and or data,” she says. “ But there is enough data to identify which risk sectors and risk locations you’re exposed to, and to start understanding your portfolio in terms of biodiversity.” Stegeman agrees. “We always should work for better data but we should not use that as an excuse for waiting to do something,” he says. “ In the end, it’s common sense — if you burn down the rainforest or use a lot of land or water, that’s not sustainable for the ecosystem .”