AXA Investment Managers (AXA IM), BNP Paribas Asset Management (BNPP AM), Mirova, and Sycomore Asset Management (Sycomore AM) have teamed up to develop a tool that can measure investments’ effect on biodiversity.
The asset managers have invited expressions of interest (CEI) for the purpose, seeking an ESG data provider who can create a methodology for measuring firms’ biodiversity effect on a large scale.
The parameters for the methodology are that it should offer a lifecycle approach and be easy to use.
The methodology should also be able to evaluate a firm’s exposure to the challenges offered by biodiversity, the asset managers said.
The methodology’s other key conditions include applicability to firms active in the main market indices, and compatibility with existing public taxonomies and internal environmental assessment systems.
The quartet eventually plans to develop a dedicated database. The last date for submitting applications is 31 March 2020.
AXA IM’s Julien Foll, BNPP AM’s Robert-Alexandre Poujade, Mirova’s Sarah Maillard and Sycomore AM’s Jean-Guillaume Péladan said: “We hope that the tool we develop will be used by all market players, and that it will become a benchmark tool.”
The latest initiative has been triggered by a common view of the asset manager quartet that biodiversity is an “urgent priority” and its collapse would risk humanity’s future.
The asset managers opined that investors need to pay attention to the preservation of species and ecosystems in the same way they have addressed climate change and developed tools such as those designed to measure carbon impact.
In saying so, the asset managers cited a May 2019 report by IPBES that found one million species at the risk of extinction.