How regulatory momentum is helping drive biodiversity-aware investment

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Investments that take account of environmental, social and governance (ESG) factors have often gone hand-in-hand with public policy. As investors become increasingly aware of the potential financial effects of climate change, so too regulators begin to impose demands that echo the concerns and may harden those financial effects on asset prices.

The same is true of biodiversity: Regulation both reflects and drives momentum alongside our growing understanding of its economic importance.

Biodiversity is a deeply complex topic with multiple strands and a host of potential solutions and consequences. As such, the regulatory response is also multi-layered, built on decades-old global guidelines, invigorated by brand new local initiatives and enhanced by an ever-improving grasp of how investors and companies can measure and track their impact.

There are five key elements that we believe are defining the corporate and investment world's response to biodiversity loss.