Biodiversity | ~ 5 min read

When a biodiversity plan comes together

On this year’s Biodiversity Day, stakeholders are encouraged to be “part of the plan” in recognition of the collaborative effort required for this critical issue. For us, this means putting the topic at the heart of our engagement strategy and highlighting some specific challenges.

The biodiversity-focused COP 15, in late 2022, elevated the protection of nature as an urgent global challenge. The conference concluded with adoption of a Global Biodiversity Framework (GBF) aimed at addressing biodiversity loss by 2030 and restoring ecosystems by 2050.

We’re putting this issue front and centre in our engagement efforts. Engaging with companies on biodiversity is critical, but also complex. To address this, we developed a biodiversity engagement framework1 focused on industry sectors that have the highest impacts and dependencies on biodiverse ecosystems.

We engage with companies across these sectors with clear expectations guided by sector-specific key performance indicators. Since 2022, we have completed over 30 biodiversity-dedicated engagements and over 100 broader engagements where we discussed biodiversity topics.

Confronting challenges

While the rapid decline of biodiversity is not a new topic, its broader integration into strategic decision-making is still evolving. From our detailed engagement dialogues we have identified six key challenges:

  • Firms are reluctant to align with the GBF due to immature data and methodologies.
  • Board expertise is under-developed to tackle this issue.
  • Progress on climate change and its interconnectivity with biodiversity can provide lessons on governance and strategies for biodiversity actions.
  • High-quality and expansive location-based data on impact and dependency is urgently needed.
  • Pioneering companies across different sectors are conducting biodiversity assessments using different methodologies, with first-stage results expected at the end of 2024 at the earliest.
  • The risks of investing in biodiversity need to be balanced by the opportunities it presents.
Collaboration is critical

The scale of both biodiversity adaptation and mitigating biodiversity loss requires a collective response combining industry peers, local stakeholders and market-wide initiatives to find solutions. The fast-evolving Nature Action 100 (NA100) aims to move the needle, by raising awareness and crowdsourcing ideas for solutions. We actively support NA100 to extend our biodiversity engagement and stewardship reach.

The recently released NA100 Company Benchmark provides a useful framework for biodiversity analysis and engagement. Based on NA100’s “Investor Expectations for Companies”, the benchmark has six core indicators underpinned by 17 sub-indicators and 50 metrics. It adopts a value chain approach, incorporating indigenous rights, climate change and nature-aligned lobbying while integrating established reporting and disclosure frameworks.2

While this benchmark’s sector-agnostic approach supports comparability, investors still need to consider sector-specific issues and performance criteria. These complexities are why we have built a proprietary biodiversity engagement framework, intensified internal collaboration with our research and data analytics functions, and published our first Biodiversity Policy Statement.

1 Source: The rules of engagement to protect biodiversity | AllianzGI
2 These frameworks are the Corporate Sustainability Reporting Directive, Science Based Targets Network and the Taskforce for Nature-related Financial Disclosures.

  • Disclaimer
    Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Past performance is not indicative of future performance. This is a marketing communication. It is for informational purposes only. This document does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solicitation of an offer to buy any security.

    The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. Certain data used are derived from various sources believed to be reliable, but the accuracy or completeness of the data is not guaranteed and no liability is assumed for any direct or consequential losses arising from their use. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted.

    This material has not been reviewed by any regulatory authorities. In mainland China, it is for Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations and is for information purpose only. This document does not constitute a public offer by virtue of Act Number 26.831 of the Argentine Republic and General Resolution No. 622/2013 of the NSC. This communication's sole purpose is to inform and does not under any circumstance constitute promotion or publicity of Allianz Global Investors products and/or services in Colombia or to Colombian residents pursuant to part 4 of Decree 2555 of 2010. This communication does not in any way aim to directly or indirectly initiate the purchase of a product or the provision of a service offered by Allianz Global Investors. Via reception of this document, each resident in Colombia acknowledges and accepts to have contacted Allianz Global Investors via their own initiative and that the communication under no circumstances does not arise from any promotional or marketing activities carried out by Allianz Global Investors. Colombian residents accept that accessing any type of social network page of Allianz Global Investors is done under their own responsibility and initiative and are aware that they may access specific information on the products and services of Allianz Global Investors. This communication is strictly private and confidential and may not be reproduced, except for the case of explicit permission by Allianz Global Investors. This communication does not constitute a public offer of securities in Colombia pursuant to the public offer regulation set forth in Decree 2555 of 2010. This communication and the information provided herein should not be considered a solicitation or an offer by Allianz Global Investors or its affiliates to provide any financial products in Brazil, Panama, Peru, and Uruguay. In Australia, this material is presented by Allianz Global Investors Asia Pacific Limited (“AllianzGI AP”) and is intended for the use of investment consultants and other institutional /professional investors only, and is not directed to the public or individual retail investors. AllianzGI AP is not licensed to provide financial services to retail clients in Australia. AllianzGI AP is exempt from the requirement to hold an Australian Foreign Financial Service License under the Corporations Act 2001 (Cth) pursuant to ASIC Class Order (CO 03/1103) with respect to the provision of financial services to wholesale clients only. AllianzGI AP is licensed and regulated by Hong Kong Securities and Futures Commission under Hong Kong laws, which differ from Australian laws.

    This document is being distributed by the following Allianz Global Investors companies: Allianz Global Investors GmbH, an investment company in Germany, authorized by the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin); Allianz Global Investors (Schweiz) AG; Allianz Global Investors UK Limited, authorized and regulated by the Financial Conduct Authority; in HK, by Allianz Global Investors Asia Pacific Ltd., licensed by the Hong Kong Securities and Futures Commission; in Singapore, by Allianz Global Investors Singapore Ltd., regulated by the Monetary Authority of Singapore [Company Registration No. 199907169Z]; in Japan, by Allianz Global Investors Japan Co., Ltd., registered in Japan as a Financial Instruments Business Operator [Registered No. The Director of Kanto Local Finance Bureau (Financial Instruments Business Operator), No. 424], Member of Japan Investment Advisers Association, the Investment Trust Association, Japan and Type II Financial Instruments Firms Association; in Taiwan, by Allianz Global Investors Taiwan Ltd., licensed by Financial Supervisory Commission in Taiwan; and in Indonesia, by PT. Allianz Global Investors Asset Management Indonesia licensed by Indonesia Financial Services Authority (OJK).

    AdMaster 3591582

Recent insights

Climate | ~ 4 min read

Methane is a top two contributor to global warming and air pollution. New regulation seeks to minimise emissions not just within the European Union but also in global supply chains.

Discover more

Sustainability | ~ 4 min read

Countries with insufficient climate actions and policies, may be violating citizens’ human rights - according to a recent legal ruling against Switzerland.

Discover more

Sustainability | ~ 4 min read

Addressing the world's challenges and opportunities is important, and one way we are doing this is through expanding our use of company engagement data.

Discover more

Allianz Global Investors

You are leaving this website and being re-directed to the below website. This does not imply any approval or endorsement of the information by Allianz Global Investors Asia Pacific Limited contained in the redirected website nor does Allianz Global Investors Asia Pacific Limited accept any responsibility or liability in connection with this hyperlink and the information contained herein. Please keep in mind that the redirected website may contain funds and strategies not authorized for offering to the public in your jurisdiction. Besides, please also take note on the redirected website’s terms and conditions, privacy and security policies, or other legal information. By clicking “Continue”, you confirm you acknowledge the details mentioned above and would like to continue accessing the redirected website. Please click “Stay here” if you have any concerns.