Biodiversity is becoming a major concern for investors and moving towards parity with climate change according to Robeco’s third annual Climate Survey.
Nearly half, 48%, of investors say biodiversity is important or central to their investment policy and this is projected to increase to 66% over the next two years. The survey, carried out by CoreData Research, covers 300 of the world’s largest institutional and wholesale investors in Europe, North America, Asia-Pacific and South Africa, representing a total of around $27.4 trillion in assets under management.
Robeco’s 2023 Global Climate Survey found that only one quarter of investors currently use funds specifically targeting biodiversity goals, but there has been a big jump in demand for impact funds, 60%, and thematic funds, 57%, since last year’s survey.
Equities, green bonds and private markets are the leading asset classes for biodiversity integration, but the biggest barriers to implementation are a lack of suitable data and ratings, 53%, and insufficient internal expertise, 41%.
With regards to climate, there has been a slight rise in investors that have made or are making a public commitment to net zero by 2050 to 48% from 45% last year. A majority of investors, 55%, are also assessing the impact of their portfolios on carbon emissions.
The survey also found that nearly half, 47%, of investors in North America are concerned about rising political and legal resistance to their sustainable investment compared to only 30% in Europe. In contrast, a majority of European, 63%, and APAC, 57%, investors are more concerned about political pressure for failing to act on ESG and climate, while only a minority in North America, 40%, feels the same.
Lucian Peppelenbos, Climate & Biodiversity Strategist at Robeco, said in a statement: “The Climate Survey shows that investors are progressing in implementing their commitments to net zero and stepping up on biodiversity, while at the same time navigating challenging energy markets and political pressures. While a lack of knowledge and data can still create barriers for implementation, we need to act now because as investors we have the means to put money to work where it can make a difference.”
©Markets Media Europe 2023
