ISS ESG  | BIODIVERSITY SOLUTIONS

BIODIVERSITY IMPACT ASSESSMENT TOOL

Assess your portfolio’s impact on biodiversity

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 enables investors to assess the impact of companies’ business and supply chain activities on biodiversity.

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DID YOU KNOW THAT?

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.

SOURCE: OECD 2022

BENEFITS OF USING THE BIODIVERSITY IMPACT ASSESSMENT TOOL

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meet
strengthen-sustainability-engagement

The Biodiversity Impact Assessment Tool can be used to support compliance with climate-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

17,000+

Issuers

Data as of January 2024. All figures are approximate.
Source: ISS ESG

With the Biodiversity Portfolio Report investors can:

  • Compare their portfolio’s Biodiversity Impact to a benchmark
  • View the breakdown of impact per sector, country, and biodiversity drivers
  • Examine the biodiversity impact attribution to sector allocation versus
    issuer selection
  • See the top and bottom (5) five holdings in their portfolios
  • Observe Economic Activities with the largest impact
  • Assess for Dependencies on Ecosystem Services (including Materiality Classification)

Click here to view the report

BIODIVERSITY IMPACT PER REGION

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Example: Company in the “Food Products” industry

TOP THREE MOST SEVERE RISKS

biodiversity-loss

BIODIVERSITY
LOSS

climate-action-failure

CLIMATE ACTION
FAILURE

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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.

SOURCE: https://www3.weforum.org/docs/WEF_The_Global_Risks_Report_2022.pdf

Distinct Methodology for Assessing Companies’ Biodiversity Impact

economic-identifcation

Economic Activity Identification &
Supply Chain Modeling

supplychain

Supply Chain Impact
Assessment

species-richness

Species Richness
Assessment

species-abundance

Species Abundance
Assessment

refinement

Refinement and
Normalization

ecosystem-services

Ecosystem Services
Assessment

BIODIVERSITY INDICATORS

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.

Click to enlarge the image

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.

Biodiversity refers to the variety of all forms of life on Earth, ranging from genes and bacteria to entire ecosystems such as forests or coral reefs. Biodiversity loss refers to declining species diversity and abundance, which may lead to the disruption of these ecosystems.

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Leverage ISS ESG’s Biodiversity Impact Assessment Tool to assess your portfolio’s impact on biodiversity and meet regulatory requirements.

Biodiversity Impact Assessment Tool

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