Biodiversity loss is a pressing global issue with far-reaching implications: according to the World Economic Forum's latest report, $44 trillion of economic value - more than half the world’s GDP - is potentially at risk because of businesses' dependence on nature and its services.

Biodiversity and climate risks and impacts are inextricably linked and mutually reinforcing: while biodiversity loss can have an impact on the ability of ecosystems to regulate climate and natural processes, some climate change mitigation measures can have negative impacts on nature, leading to negative tradeoffs or undesirable effects. Biodiversity also provides an important defence against climate impacts, such as increasing the resilience of human settlements to extreme weather events and improving water security.

Eurizon has defined an internal screening methodology, based on the principles of the Kunming-Montreal Global Biodiversity Framework, to identify issuers that may have a negative impact on biodiversity due to (i) the location of their production sites near sensitive areas and fragile ecosystems or (ii) their own activities. The objective of this methodology is to provide an assessment of the potential exposure of investee companies to issues related to the use of ecosystems and the associated potential loss of value. In this context, Eurizon aims to identify companies that are potentially capable of causing negative impacts on biodiversity, in order to prioritise its engagement activities towards those companies that are more exposed to biodiversity loss.

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