Nature is the foundation of the global economy, providing essential ecosystem services such as pollination, clean air and water, and climate regulation. The loss of natural systems like forests, pollinators, and wetlands exacerbates environmental degradation, economic instability, and social injustice. What is Biodiversity?
Biodiversity refers to the variety of different plants, animals, and microorganisms that live in an ecosystem or on Earth as a whole. It is a key indicator of the health of ecosystems and can be threatened by human activities such as deforestation, pollution, and climate change.
- Consequences of Biodiversity Loss: The loss of biodiversity has severe consequences for ecosystems, including reduced ecosystem resilience, decreased nutrient cycling, and loss of ecosystem services.
- Global Economic Impacts: Biodiversity loss has significant economic implications, including impacts on food security, healthcare, and economic stability.
- Social Consequences: Biodiversity loss also has social consequences, including loss of cultural heritage, traditional knowledge, and community resilience.
| Impact of Biodiversity Loss | Example | Consequence |
|---|---|---|
| Loss of Pollinators | Crop Dependence | Reduced crop yields, decreased food security |
| Deforestation | Disrupted Water Cycles | Changes in weather patterns, impacts on human settlements |
| Climate Change | Sea-Level Rise | Increased risk of coastal erosion, loss of habitats |
Despite its importance, biodiversity is declining at an alarming rate. The Kunming-Montreal Global Biodiversity Framework sets out an ambitious pathway to reach the global vision of a world living in harmony with nature by 2050. The Way Forward
The key to halting and reversing biodiversity loss is to address the root causes of the problem. This includes reducing our carbon footprint, protecting and restoring natural habitats, and promoting sustainable land use practices. Royal London Asset Management is committed to supporting this goal through its engagement strategy, launching two programmes:
1. Climate-Nature Nexus: Exploring the interconnectedness of climate and nature to better understand the impact of one on the other. 2. Just Nature: Ensuring that conservation efforts are not only environmentally sustainable but also socially inclusive, supporting local communities, indigenous peoples, and workers. These programmes aim to support companies in their transition to a nature-positive future, promoting sustainable practices, reducing environmental impact, and promoting social equity. What We Are Doing
Royal London Asset Management is a member of Nature Action 100, a global initiative encouraging companies to disclose their impacts and dependencies on nature. We also engage with companies on biodiversity net gain and have a long-standing engagement project with the UK water sector. Our engagement programmes focus on the social and environmental implications of biodiversity loss, working with companies to develop nature plans and incorporate ‘just nature’ into their biodiversity strategies. We also conduct research and advocacy activities to promote sustainable practices and support companies in their transition to a nature-positive future. Find Out More
Learn more about our engagement programmes, including our Stewardship and Responsible Investment Report, and our Climate Transition Assessments. Visit our website for more information on our commitment to sustainability and responsible investing.
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