Sector risk profiles

Over the next 10 years, some business sectors will be exposed to significantly more biodiversity-related risks than others. If the Post-2020 Global Biodiversity Framework is adopted, it will require rapid and transformational changes to ‘business as usual’. When compiling a portfolio, understanding the broad risk profiles of each sector is fundamental to understanding the risk level you are and will be exposed to. We can provide advice on the changing sustainability risk profiles of different business sectors based on their dependence and impacts on the natural environment. Some sectors, such as farming, have obvious dependencies and impacts on biodiversity, whereas those of others, such as technology, are less obvious and might carry hidden risks.

The Nature Positive team uses a screening process to help determine whether certain sectors in particular geographical locations or company types should have a higher flag regarding biodiversity impacts or natural capital more generally. These flags will help to apprise you of risks from investment in them, including supply chain risks or reputation risks.

This information can also be used as part of your investment committee process. When you are thinking about investing in businesses and have been fully apprised of the biodiversity risks, we will help with your opportunity analysis and value creation opportunities, as well as risk assessment.

If you would like to find out more about how we can provide advice on the changing sustainability risk profiles of different business sectors, please get in touch.

SPECIALIST BIODIVERSITY SERVICES FOR INVESTORS

In-depth analysis

We can review the operations of any company or group of companies to identify the specific sustainability risks that relate to it and its supply chain.

Advice on ratings

We can provide advice on the sometimes overlooked, but increasingly critical, biodiversity impacts and dependencies that will underpin a business’s overall sustainability.

Due diligence and transaction support

We can provide risk registers, advice on key issues and support in achieving International Finance Corporation Performance Standard 6 and World Bank ESS6.