BNP Paribas Asset Management hosts Biodiversity Roundtable with Australian Investment Leaders
BNP Paribas Asset Management Australia Limited (‘BNPP AMAU’), hosted a digital roundtable in late November with a select number of investment leaders from the Australian asset owner and consultant community. The event was an opportunity for thought provoking discussion around biodiversity and natural capital, which BNP Paribas Asset Management (‘BNPP AM’) passionately believes is as great a risk to portfolios as climate change.
Protecting and preserving the environment is a key pillar of the firm’s Global Sustainability Strategy, which also aligns with the BNP Paribas Group’s environmental and biodiversity commitments.
During the 90 minute roundtable, discussion centred on why biodiversity and natural capital are relevant, understanding our dependencies on ecosystems and the cost of inaction. Participants also explored the development of the Taskforce on Nature-related Financial Disclosures (‘TFND’) and the considerations of stewardship vs divestment vs positive investment.
The roundtable was moderated by Phil Graham Independent Board Member, Consultant and Former Deputy CIO of Mercer Asia Pacific with BNP Paribas Asset Management’s Rachel Crossley, Head of Stewardship, Europe from the Sustainability Centre and Guy Davies, Chief Investment Officer, Fundamental Active Equities also actively contributing to the discussion.
To promote meaningful and concentrated discussion, only a select number of external industry leaders attended including, Allison van Lint, Head of Research, Responsible Investments for Cbus Super and David Humphreys, Head of Sustainable Investing for TelstraSuper. Aware Super were also represented at the virtual event.
Commenting on the investment risks associated with natural capital loss, attendee Shali Lingaretnam, Acting Head of Investment Stewardship for VFMC said;
“Managing ESG risks alongside other investment factors is an important part of being a responsible steward of capital. Whilst we tackle the challenges posed by climate change, we must in equal measure manage the impacts on biodiversity, as they too pose real and present economic risks.”
Another attendee, Rachel Halpern, Head of Sustainability for JANA Investment Advisers shared her thoughts on net-zero aspirations stating;
“It’s clear that we won’t achieve net-zero without consideration of biodiversity risks and taking advantage of the carbon storage inherent in nature.”
And Kim Farrant, General Manager, Responsible Investment for HESTA commented;
“As universal owners, we derive value from the strength of the economy. Because more than 50% of global GDP is dependent on natural capital and ecosystem services, any significant depletion of natural capital is likely to impact GDP and pose a risk to long-term member returns.”
As the event hosts, BNP Paribas Asset Management took the opportunity to share their position on the biodiversity crisis. In May this year, BNP Paribas Asset Management published a research paper, entitled Sustainable By Nature: Our Biodiversity Roadmap, which details the firm’s plans to embed biodiversity considerations across all of its activities through ambitious targets to analyse key water and forest risks and opportunities at the company, sector and fund level, in order to measure and disclose the environmental footprint of its investments. In particular it plans to improve the water efficiency of its investment portfolios and support global efforts to end deforestation by 2030.
Also in May this year, BNP Paribas Asset Management announced a partnership with CDP to accelerate the development of biodiversity reporting metrics. With BNP Paribas Asset Management’s backing, CDP will start to develop a common, globally relevant corporate biodiversity reporting framework that accelerates action on nature within the private sector.
BNPP AM also announced the launch of BNP Paribas Ecosystem Restoration in June 2021, a thematic strategy offering exposure to companies engaged in the restoration and preservation of global ecosystems and natural capital.
The event concluded with discussion around the upcoming UN Biodiversity Conference COP15 Part 2 taking place in Kunming, China from 25 April – 8 May 2022. In support of this initiative, BNPP AMAU has also committed to holding a second biodiversity roundtable with industry investment leaders in mid-2022.
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