Sustainability and Corporate Governance Report 202
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HOW WE TAKE ACTION TO REDUCE CLIMATE IMPACT – H N
DE S HANDEL BANK N FONDE NKEN F NDER Variety creates long-term values Reports indicate that biodiversity, or diversity among all living organisms on our planet, is declining at an alarming rate. This poses a major threat not only to animals and nature, but to us humans. The issue has started to appear on the agendas of many decision-makers, and investments in biodiversity not only help our planet – they can also provide untapped economic opportunities. In addition, the pressure from lawmakers is increasing. The EU’s new taxonomy, of which biodiversity is one of six environmental objectives, is an example of how more and more demands are being placed on companies and investors alike on this issue. A company’s operations can both influence and depend on biodiversity. As a result, financial risks can arise as a result of biodiversity loss. However, an increased focus in this area can lead to opportunities, and good management of biodiversity issues can bring competitive advantages. How we take action on the issue Biodiversity is part of our overall analysis of the operational sustainability performance of companies, and the extent of the focus on this issue during the investment process varies greatly among sectors. Tools and methods have begun to emerge for analysing companies’ financial risk specifically from a biodiversity perspective, though most of them are useful primarily from a broader perspective that analyses entire ecosystems. Much still remains to be done, and at the moment we are addressing the issue mainly through engagement in dialogue with the companies. This is an important issue in sectors like the salmon industry and the production of biodiesel and bio-based substitutes such as textiles and packaging. 33