Land Use and Biodiversity

The Land Use and Biodiversity Material ESG Issue (MEI) focuses on how companies manage the impact of their operations on land, ecosystems, and wildlife, covering land conversion, rehabilitation, forest management, and biodiversity protection.

Assessing Environmental Challenges
Concerns over land use, biodiversity, and deforestation are increasingly prominent. Reports highlight significant forest loss and accelerating species extinction rates, with implications for the global economy and health.

Morningstar Sustainalytics' ESG Risk Ratings assess companies' exposure and management of land use and biodiversity issues through subindustry-specific indicators. This includes evaluating deviation from default exposure and management effectiveness in areas like biodiversity programs and deforestation policies.

Deforestation's Global Impact
As ESG investing expands, attention to land use and biodiversity issues grows. Shareholders can contribute to better management through engagement and voting initiatives, recognizing the impacts on the economy, food system, and climate.