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250 Firms Responsible for 73% of Corporate Biodiversity Impact

A pilot study by the Finance for Biodiversity (FfB) Foundation has found that the 250 high-impact companies based on the MSCI World Index are responsible for as much as 73% of the entire index’s biodiversity impact. The analysis led by the FfB Foundation – a group of 126 financial institutions representing €18.8 trillion in AuM – showed that biodiversity impact involves a number of sectors and industries beyond well-known climate risk sectors, including the food and beverage and materials sector. It seeks to advance the current state of biodiversity impact research and establish a “common ground” between the tool providers. As accurate company-level data on biodiversity impact is not yet available, the tools measure potential instead of actual impact by using company revenues, product footprints and region-specific sector averages. Frontier tools can calculate biodiversity footprints of corporations based on life cycle analysis and a subsequent biodiversity model to estimate impact on biodiversity loss. Anne-Marie Bor, Co-Founder of FfB Foundation, said: “Investors need this type of information for collaborative action on engagement with companies, impact assessment and target setting on nature. The analysis also lays the foundation for further collaboration with the four footprinting tool providers of the study.” 

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