Sustainalytics Insight: Biodiversity & the Private Sector
As investors prepare for the 2024 United Nations Biodiversity Conference, or COP16, the majority of private sector companies are just at the beginning of their journey toward managing risks posed by biodiversity loss, according to new insight from Morningstar Sustainalytics.
In new analysis based on Morningstar Sustainalytics’ Biodiversity and Natural Capital Stewardship Program, Morningstar Sustainalytics Engagement Manager Gayaneh Shahbazian outlines the challenges facing private sector companies as management works to close the gap between readiness and reality when it comes to meeting biodiversity targets. According to Shahbazian, while 43 of 50 private sector companies in the program recognize biodiversity as a material issue, just 26 have board-level oversight on biodiversity issues. Furthermore, while 40 of these companies have made a high-level commitment to addressing nature and biodiversity loss, only half (21) have developed a strategy to address it.
Morningstar Sustainalytics Biodiversity & Natural Capital Stewardship Program: Commitment to Strategy Mismatch
Gayaneh Shahbazian – Engagement Manager, Stewardship, Morningstar Sustainalytics:
“Despite progress in private sector action on biodiversity over the past two years, our Stewardship Program highlights that many companies are still in the early stages of addressing biodiversity risks, as reflected by the lack of governance, board-level expertise, and strategic approaches to address the issue. As we approach COP16, collaboration between governments and the private sector will be critical for the successful implementation of the Biodiversity Plan.”
To speak in more detail with Gayaneh, reach out to Tim Benedict at [email protected] or (203) 339-1912.
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