S&P Global’s Sustainable1, an arm committed to ESG initiatives, has unveiled a fresh perspective on environmental investment.
With an amplified spotlight on nature and biodiversity risk in the business landscape, and the intensifying global efforts to confront nature-related challenges, the move towards assessing such risks in investment portfolios is gaining momentum.
S&P Global, renowned for its market intelligence, analytics, and benchmarks, has consistently been at the forefront of sustainability endeavours. Their subsidiary, Sustainable1, specifically focuses on ESG and sustainability aspects, aiding businesses and investors to align their strategies with global sustainability goals.
Their newly launched Nature & Biodiversity Risk portfolio assessment service is set to transform the investment landscape. It utilises the recently unveiled Nature & Biodiversity Risk dataset, enabling companies and investors to effectively evaluate, manage, and tackle nature-related risks. This comprehensive dataset covers an astounding 17,000 companies and over 1.6m assets, incorporating risk metrics such as The Ecosystem Footprint.
The Ecosystem Footprint, one of the standout features of the service, offers insights by measuring land area, gauging ecosystem degradation, and understanding ecosystem significance. This metric empowers investors with a profound comprehension of a company’s interplay and reliance on nature.
This emphasis on nature and biodiversity is not without global backing. In December 2022, the world witnessed the adoption of the Kunming-Montreal Global Biodiversity Framework at the COP15 UN Biodiversity Conference. This set a precedent with goals centred on halting biodiversity loss, safeguarding natural ecosystems, and escalating biodiversity-centric financing.
Sustainable1 said, “The new service will enable financial institutions to fathom and delve into nature-related impacts and dependencies in their portfolios, echoing the sentiments of the Global Biodiversity Framework (GBF) and resonating with the Taskforce on Nature-related Financial Disclosures (TNFD) approach.”
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