After the fight against climate change, finance discovers a new and significant challenge in
the preservation of biodiversity. The worldwide degradation of biodiversity represents a significant
challenge for humanity, writes Emmanuelle Sée, head equity France, Swiss Life Asset
Managers.
WWF1 indicates that since 1970, the population of wild vertebrates has decreased by
almost 70%. The main factors responsible for the degradation of our ecosystems include changes in land and sea
use, direct exploitation of species, climate change, pollution, and invasive species.
A multidimensional issue
The biodiversity crisis and the climate crisis are a
joint-crisis. Climate change and biodiversity loss need to be addressed with the same urgency. Beyond the
interest for species and ecosystems, it is a matter of ecosystem services within a climate regulation prism. Our
ecosystems play a central role in the absorption of carbon. Indeed, oceans and terrestrial ecosystems absorb
nearly half of the CO2 emitted globally. They contribute directly to the mitigation of global warming. The
degradation of nature has health and social repercussions and the sustainability of economic models and of the
financial system are also under threat. There are direct consequences on companies’ activities and inevitably on
their revenues. It is estimated that 5 to 8% of current world agricultural production, representing an annual
market value of 235 to 577 billion US dollars, is directly attributable to animal pollination2.
The regulatory framework is encouraging investors to act
The COP 15 on biodiversity, held in
December 2022 in Montreal, was highly anticipated after successive cancellations due to Covid. The political
ambition was to replicate for biodiversity the mobilising effect of COP 21 that led to the Paris Agreements.
After several months of intense negotiations, they adopted a historic agreement which defines a clear course and
sets quantified and measurable targets to significantly reduce the loss of biodiversity.
Whether it is through the CSRD directive, which will constitute a major step forward with the harmonization of
extra-financial data, or the Energy-Climate law in France, or the European Commission’s “technical alignment
criteria”, these advances will enable all stakeholders (companies and investors) to have common references.
A pool of opportunities
At Swiss Life Asset Managers, biodiversity is a topic that is
particularly important to us. Pioneering the market, we introduced the Swiss Life Funds (LUX) Equity Environment
& Biodiversity Impact fund, a thematic, impact-driven fund. This actively managed global listed equities fund
employs a conviction-based approach with a dedicated focus on impact. Our unique “Quantamental” approach,
executed by experienced managers, blends quantitative and fundamental elements to craft a resilient portfolio
aligned with biodiversity challenges.
Our primary role involves evaluating how companies integrate criteria for biodiversity preservation. This
translates into excluding companies with adverse impacts and selecting those offering solutions to combat
pollution, enhance water quality, and reduce waste. Our analysis aligns with the UN Sustainable Development
Goals, such as SDG15 (life below water and life on land).
The World Economic Forum projects that biodiversity-related investments could constitute a market valued at $10
trillion per year, generating nearly 395 million jobs by 2030.
Since 2022, Swiss Life Asset Managers France has been a member of the Finance for Biodiversity Foundation,
underscoring our dedication to biodiversity preservation at the core of our investment approach. We firmly
believe that safeguarding biodiversity is a pivotal priority for sustainable investors.
1 World Wildlife Fund
2 Source: IPBES
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