Nature Action 100 (NA100), the investor-led engagement initiative to address nature and biodiversity loss, has completed its first benchmark assessment of corporate action on nature, revealing the results at this year’s United Nations Biodiversity Conference (COP16) held in Columbia.
The NA100 Company Benchmark, which launched in April this year, assessed the performance of target firms against goals set by the initiative.
NA100, which launched at the UN’s biodiversity summit in Montreal (COP15) in 2022, now has over 220 signatories. The initiative aims to support better corporate action on reversing nature and biodiversity loss to mitigate financial loss and protect the long-term interests of investors.
The benchmark is based on the expectations that investors communicated to the companies back in September 2023. It is comprised of six indicators, underpinned by 17 sub-indicators and 50 metrics, with companies assessed on the quality of their disclosures and actions.
It is intended to support members of NA100 by informing their engagement and dialogues with companies under the initiative.
“By providing a comprehensive and comparable view of a company’s progress on nature action, the NA 100 Company Benchmark enables constructive, action-oriented, and ultimately, measurable dialogue between investors and the focus companies,” said Emine Isciel, head of climate and environment at Storebrand Asset Management, and member of NA 100 Steering Group.
“The benchmark sets a new standard and roadmap for investor engagement on nature, adding important momentum on investor action to support the implementation of the Biodiversity Plan,” Isciel added.
Snapshot
The release of the first NA100 benchmark represents a snapshot of corporate action in key sectors to reverse nature and biodiversity loss by 2030.
The initiative said that as the material financial risks of nature loss and the economic benefits of restoring nature become clear and new resources to support corporate action emerge, it is anticipated that companies will make more progress in future benchmarks.
One of the benchmark’s key findings was that companies disclose limited progress towards recognising and protecting the rights of Indigenous Peoples and local communities.
According to the assessment, only 31 companies meet at least one of the five benchmark metrics related to respecting and upholding the rights of Indigenous Peoples and local communities, who play crucial roles in biodiversity conservation, restoration, and stewardship, with no company meeting all the criteria.
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