Biodiversity

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The loss of biodiversity that comes with high extinction rates is a serious problem. The continuing current decline in biodiversity is unprecedented in the history of humanity. 

The loss of biodiversity impacts human existence. The loss of animal and plant species has adverse effects on, for instance, on food supply reliability.

Environmental, social and governance factors, including biodiversity-related risks, are important for long-term investments, such as those in alternative assets. Responsible investment decisions can contribute to the preservation of biodiversity while at the same time helping to stabilise financial results.

Dealing with the Principle Adverse Impacts on biodiversity

MEAG considers the Principal Adverse Impacts (PAI) on biodiversity when making investment decisions. We have a "comply or explain" approach to investments in companies that are associated with negative impacts on biodiversity-sensitive areas. This approach is intended to either avoid or explain investments in companies that claim to operate in biodiversity-sensitive areas, but have been involved in controversies with severe negative environmental impacts (based on data from MSCI ESG Research LLC). 

Significance of the ESG factors

ESG factors, including biodiversity risks, are particularly important for alternative investments due to their long-term nature. We therefore take ESG criteria into account when selecting these kinds of investments. For instance, in order to help protect the most important biodiversity areas, MEAG does not invest directly in alternative assets if a significant portion of the underlying assets are located in natural or protected World Heritage sites as designated by the UNESCO World Heritage Convention.

MEAG’s engagement

We are involved in leading initiatives in the field of biodiversity, such as the "Nature Reference Group" under the leadership of the investor initiative "UN Principles for Responsible Investment". The Nature Reference Group acts as a collaborative platform with the aim of improving its signatories' understanding of environmental impacts, dependencies, risks and opportunities in the investment context. By participating in this initiative, MEAG improves its ability to take action against the loss of nature and biodiversity.