AXA, BNP Paribas, Sycomore and Mirova launch joint initiative to develop pioneering tool for measuring investment impact on biodiversity
AXA IM, BNPP AM, Mirova, and Sycomore AM have launched a call for expressions of interest (CEI) for a partner to develop and implement an innovative tool to measure the impact of investments on biodiversity, stemming from the firms’ belief that preserving the planet’s biodiversity is an urgent priority.
There is growing interest in quantitative indicators among regulators, investors, and their clients, according to an AXA press release, because these indicators can be used to measure the impact of investments, particularly environmental impact, in order to obtain concrete portfolio sustainability assessments.
Since COP 21 in 2015, the number of tools available has multiplied. Today, in January 2020, there are tools for measuring carbon impact, for measuring the extent portfolios are in line with the 2°C trajectory and many others, but these assessments remain largely focused on climate change. However, it is equally important that we preserve species and ecosystems. There is scientific consensus in this regard: one million species are facing extinction. Biodiversity plays a vital role, and its collapse would jeopardise the future of humanity.
AXA IM, BNP Paribas AM, Mirova, and Sycomore AM are joining forces in order to raise awareness in the financial community and develop the necessary tools for investors to respond to this threat.
This coalition of investors is looking to work with an ESG data provider that is capable of developing and implementing a methodology for measuring the impact of a company’s activity on biodiversity. The long-term goal is to create a dedicated database.
In order to provide investors with the most significant and useful assessments possible, the methodology must be consistent with the following principles: Impact measurement; “Lifecycle” approach; Sector estimates; Ease of use; Flexibility and transparency; Aggregation and communication; Application scope; and Financial materiality, more details on these can be found HERE.
Julien Foll from AXA IM, Robert-Alexandre Poujade from BNPP AM, Sarah Maillard from Mirova and Jean-Guillaume Péladan de Sycomore AM have issued the following statement: “It is critical that we begin to take into account biodiversity-related challenges. We believe it is crucial that the financial community addresses this issue in the same way that it has addressed climate change. We hope that the tool we develop will be used by all market players, and that it will become a benchmark tool.”
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