Merging biodiversity criteria into investment processes is not a simple task, especially if it is seen as potentially detracting from risk adjusted returns. We believe it is time for a strategic reframe, where the planet is no longer seen as a risk to manage at the expense of returns, but seen as a platform for invention and a source of opportunities, also for investors.

Having developed and executed a biodiversity-aligned investment strategy ourselves, we see it as our mission to inspire and support investors in adopting biodiversity-conscious approaches, whether compliance-driven or strategically transformative, without losing sight of solid business models and investment returns.

From introductory education and awareness-building to formulating a theory of change, defining biodiversity KPIs, and designing measurable reporting frameworks, we are ready to assist.

Range of approaches

Currently, most broad-based approaches are primarily risk- and compliance oriented and aim to minimize harm by monitoring selected data sets. Alternatively, funds may target broad based system transformation by investing in business models that offer viable alternatives to industries with high environmental impact. This marks a shift from a compliance-based mindset to a strategic one, where reducing biodiversity impact becomes a source of competitive advantage.

Between these two ends of the spectrum lie strategies focused on specific sub-themes such as water, climate change or regenerative agriculture.

Each approach presents different types of perceived and actual risks and opportunities. For system transformation strategies, primary risks include early-stage business models that have yet to prove their viability, along with potentially limited trading liquidity. However, the upside can be significant, not only in financial terms but also in delivering structural improvements to biodiversity outcomes.

By contrast, compliance-driven strategies generally involve more liquid investments and are easier to implement at scale. Their long-term risk lies in the potential obsolescence of companies making only incremental changes, particularly if more sustainable business models continue to scale. While such strategies may encourage larger companies to begin addressing biodiversity, there is currently limited evidence that these strategies result in substantial reductions in biodiversity pressures.

We partner with investors looking to develop biodiversity based investment strategies and allocate capital to planet-friendly companies