Global biodiversity loss can lead to operational, legislative, and reputational risks for investors, but many lack the information needed to conduct a holistic risk assessment.
ISS ESG’s Biodiversity Impact Assessment Tool can enable investors assess the impact ofcompanies’ business and supply chain activities on biodiversity.
Based on OECD’s Environmental Outlook to 2050, without new policies in place, we can expect a 10% reduction in total global terrestrial biodiversity. This includes one-third of all marine mammals, 40% of all amphibian species, and nearly 33% of coral reefs.
BENEFITS OF USING ISS ESG’s BIODIVERSITY IMPACT ASSESSMENT TOOL
ISS ESG’s Biodiversity Impact Assessment Tool can be used to support compliance with biodiversity-related disclosure frameworks within the European Union, including Article 29 of the French Energy Transition Law, as well as the UN Convention on Biological Diversity and the Task Force on Nature-related Financial Disclosures.
COVERAGE
Approximately
7,800
Issuers
BIODIVERSITY IMPACT PER REGION
Example: Company in the “Food Products” industry
TOP THREE MOST SEVERE RISKS
BIODIVERSITY
LOSS
CLIMATE ACTION
FAILURE
EXTREME
WEATHER
According to the World Economic Forum’s 2022 Global Risk Report, biodiversity loss ranks alongside climate action failure and extreme weather as one of the top three most severe risks facing the world during the next decade.
POTENTIALLY DISAPPEARED FRACTION OF SPECIES (PDFs)
Potential Disappeared Fraction of species (PDFs) in a given area over a specific period of time. Larger PDF value indicates a higher level of impact on biodiversity.
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MEAN SPECIES ABUNDANCE
(MSA)
Mean Species Abundance (MSA) measures the biodiversity intactness relative to its abundance of undisturbed/intact ecosystem.
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The Biodiversity Impact Assessment Tool was developed by a team of biodiversity and modelling experts in partnership with Quantis.
The Biodiversity Impact Assessment Tool includes approximately 600+ individual factors derived from millions of individual datapoints allowing for granular analysis and understanding.
MIDPOINT INDICATORS
Climate Change
Marine Acidification
Freshwater Acidification
Terrestrial Acidification
Marine Eutrophication
Water Availability
Freshwater Ecotoxicity
Land Transformation
Land Occupation
Freshwater Eutrophication
Biodiversity Thematic Engagement
Partner with ISS ESG’s Biodiversity Thematic Engagement team to improve transparency around biodiversity impact and strategies to manage nature-related risks.
Palm oil is one of the most important raw materials for today’s global economy. This has put a spotlight on how the palm oil supply chain is performing in sustainability-related areas such as deforestation and its impact on biodiversity.