Summary: The 15th Conference of Parties to the Convention on Biological Diversity, known as COP15, resulted in a long-anticipated Kunming-Montreal Global Biodiversity Framework (GBF), heralded as a Paris-style agreement for nature. For environmentalists this was a big step forward, but for many investors ..... this was just another conference. After all how can a non binding agreement on biodiversity make a difference to my business or my investments? We think this thinking is short sighted.
Why this is important: Our expectation is that in a few short years this could be a really important issue for even the most cynical investor (& their legal/compliance department).
The big theme: Many investors are starting to see how the social, legal and regulatory changes around human rights are impacting their investing decisions'. What is less appreciated is that the issues around bio diversity are moving the same way. Companies and investors need to stay ahead of the curve on this. These are not just good corporate citizen topics anymore; they are becoming a critical driver for a company's long term financial success or failure.
Summary of an article from the The Conversation
In the past six years more and more sophisticated studies have confirmed that although not all insect species are declining, many are in serious trouble. A 2020 compilation of 166 studies estimated that insect populations were on average declining globally at a rate of 0.9% per year. But the declines are uneven. And the decline includes so called pest insects, as well as the traditional "good" insects such as pollinators.