Continuous education is an important part of any professional investor’s career, particularly as times change so rapidly. Biodiversity has massively risen up the agenda in the last few means, but what it means for investing and the transition to a more nature-positive world is less clear.
What challenges (and opportunities) will biodiversity bring? And why should we act now? Not knowing the answers to these important questions has put some financial professionals at a disadvantage in being able to explain it to others like clients and colleagues.
This module bridges that gap. Those participating in this course are invited to digest the information and then take the test at the end. To enhance the learning experience, the module is delivered using clear language, charts, a video and case studies. Each of the eight chapters takes up to 15 minutes to read.
A score of at least 12 out of 15 correct answers (80%) for the test will count as two hours towards your professional CPD requirements. The educational module is already accredited by local and global institutes, including CII, FPI, CISI, FPSB, AFP and FPI.
CFA Institute allows its members the ability to self-determine and self-report professional learning credits earned from external sources. CFA Institute members are encouraged to self-document such credits in their online PL tracker.
Good luck!
- 01
What is biodiversity?
Biodiversity is the variety of all living things – and it’s diminishing every year. It’s also often considered the flipside of climate change, and solutions are available to stop biodiversity loss.
Learning objectives
How biodiversity, ecosystems and ecosystem services are defined
The five main drivers of biodiversity loss and its link to climate change
How ‘bending the curve’ offers solutions including vast new markets
- 02
Why is it relevant for investors?
The Earth’s economy depends on nature; if it is degraded, then so is GDP. Yet, protecting biodiversity could unlock trillions in investment opportunities.
Learning objectives
How half the world’s economic output is highly dependent on nature
Why it’s also a USD 10 trillion business opportunity in the growth areas
Using heatmap assessments to identify vulnerable investment assets
- 03
Regulations
Addressing biodiversity loss is firmly on the global policy agenda. An increasing number of frameworks and regulations aim to stem biodiversity loss, with a series of targets to be met.
Learning objectives
How the Kunming-Montreal Framework seeks no more nature loss by 2030
The role played by central banks, regulators and financial supervisors
The vision of the EU Biodiversity Strategy as part of the European Green Deal
- 04
Collaborations
Investors have been playing their part in developing solutions for biodiversity loss. But as with climate change, the issue is too big for any individual asset owner or manager to deal with, so a number of collaborations have sprung up.
Learning objectives
The vital role of the Taskforce on Nature-related Financial Disclosures
Investor initiatives: the Finance for Biodiversity Pledge and Nature Action 100
How engagement can help reduce the biodiversity impact of investee companies
- 05
How to invest in biodiversity?
Investing in biodiversity is best done by identifying the companies that offer solutions to the five main drivers of biodiversity loss, many of which address more than one driver.
Learning objectives
Investing in the transition of industries that impact the five drivers
Why more efficient land use and addressing climate change are key
Ample opportunities from organic food and forestry to biotechnology
- 06
The challenges for investors
Even with the best will in the world, and the right sustainability expertise, trying to protect biodiversity is fraught with challenges for investors.
Learning objectives
The definition and data dilemmas in trying to measure impacts
A lack of research, ratings and internal expertise hamper investors
Macro problems with incentives, subsidies and a lack of political will
- 07
The circular economy
A circular economy is by definition one that is nature-positive, and one that attracts increasing investor interest and official regulation in order to achieve it.
Learning objectives
The need to replace the take-make-dispose linear economic system
Addressing land use and resource exploitation can cut waste
Investment opportunities in new means of production and recycling
- 08
Case studies
We’ve seen how biodiversity investing can be done, but how does it work in practice? There are many investible companies developing solutions to biodiversity loss or means of making food production more efficient.
Learning objectives
How companies are using eco-tools to cut their impacts
Why biotechnology offers alternatives to fishing and pesticides
Using data to plot emissions and engagement to stop deforestation
- 09
Summary
In summary, we can recap on what is biodiversity investing. This final chapter highlights the main points from the previous eight.
Ready for the test?
Now that you’ve learned the essentials of biodiversity investing, it’s time to test your knowledge. Below are 15 multiple choice questions on the eight chapters you have completed. Click on the box that you think contains the correct answer. If you answer 12 or more questions correctly, you will be awarded two hours of CPD.
