NatureAlpha, a nature and biodiversity analytics company, is joining forces with MSCI to provide solutions for investors seeking to track the biodiversity and nature risks, footprints and dependencies of their investments.
The partnership follows the agreement of the Global Biodiversity Framework at the COP15 Conference in Montreal in December. COP15 provided an important tailwind to conversations regarding the role the investment community can play in protecting nature and biodiversity and how related material risks can be measured.
Through the collaboration, MSCI will distribute NatureAlpha’s biodiversity data and analytical tools to the global investment community. The data will cover the full list of constituents of the MSCI ACWI Index, helping clients to better identify their exposure to higher-impact companies, industries and operations from a nature and biodiversity risk perspective.
It will also help clients participate in more meaningful engagement with portfolio companies and stakeholders, which will help better align companies’ activity to global nature and biodiversity frameworks and targets.
In addition, the partnership will provide clients with enhanced comprehensive reporting in response to growing regulatory pressures, including the Sustainable Finance Disclosure Regulation (SFDR) reporting and in alignment with the evolution of the Taskforce on Nature-related Financial Disclosures (TNFD).
NatureAlpha and MSCI have also agreed to work together on research projects and explore the potential development of additional methodologies and tools, such as a Biodiversity Footprint metric based on advanced lifecycle analysis methodologies to help investors measure the absolute or relative impact of their investments.
Vian Sharif, founder of NatureAlpha, said: “Our collaboration with MSCI comes at a crucial moment for biodiversity and nature with investors driving demand for data which asset managers can integrate into workflows. With over half of the world’s GDP dependent on nature, financial exposure to risks from nature loss is significant and accountability is greater than ever.”
Arne Klug, vice president and biodiversity research director at MSCI ESG research, added: “The investment community is becoming increasingly aware of how nature loss is a major threat to the global economy. Global biodiversity challenges have tangible impacts on the ways in which companies across industries function now and in the future. Therefore, investor demand for advanced data and tools to address biodiversity risks and impact is growing.”
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