Why should investors care about biodiversity? Part 3
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Why should investors care about biodiversity? Part 3

There are multiple reasons why mainstream investors and companies should be paying more attention to biodiversity loss. One reason (among many) is it actually makes good business sense.

Summary: Biodiversity loss has, quite rightly, been in the news a lot more over the last few years. After having been the poor cousin of carbon and pollution, it's now getting some of the focus it deserves. It's important to remember that while climate change and biodiversity loss are linked, the solutions are often different. This blog takes the financial argument a bit further, and talk about practical solutions that food companies can apply at scale. Solutions that can form part of their strategic and tactical response to the changes that the transitions will bring.

Why this is important: Actions need to make financial sense as well as positively contributing to reducing biodiversity loss.

The big theme: There are real concerns about our ability to feed the world, while at the same time trying to reduce the impacts on our natural world. The resources are not limitless. Pretty much all of our economic system is actually dependent on nature - it's hard to think of many societies that would survive the collapse of their natural environment. This rather quickly shifts into the universal investor way of thinking. Put simply, we are dependent on the wider economy and society for the majority of our long term financial returns, so it makes financial sense to invest at least part of our portfolio in ensuring that it continues to be healthy and sustainable.



The details


There are multiple reasons why mainstream investors and companies should be paying more attention to biodiversity loss. One reason (among many) is it actually makes good business sense. Earlier this week we wrote about one part of this - specifically milk. For today’s blog we explore a bit more the financial case for caring about biodiversity and for making the changes that will help our biosphere recover. Some of the points we make might be familiar, some might not. My favourite is about pasta made from peas.

We are focusing on solutions (and there are many - some easy and some hard) - because from our perspective finance is supposed to be about finding solutions to society's wants and needs.

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Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for. Peter Drucker

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