A global coalition of investors representing approximately USD 2.5 trillion in assets under management is urging governments to take ambitious policy and regulatory action to halt and reverse global biodiversity loss. This call to action at COP16 in Colombia is backed by 27 pension funds and asset owners.

The statement, signed by investors from Australia, Canada, Denmark, the Netherlands, Sweden, Switzerland, the United States and the United Kingdom, calls on governments to set ambitious national targets, including sector transformation plans; implement mandatory disclosure on nature for companies; establish regulation that addresses the five drivers of biodiversity loss; and develop and scale financial mechanisms for nature.

Leading this initiative are five pension investors: AP7 (Sweden); CDPQ (Canada); the Church of England Pensions Board (UK); HESTA (Australia); and USS (UK).

The funds call for a ‘whole of government’ approach to tackling the biodiversity crisis to protect investment returns and investor confidence.

Flora Gaber, Manager ESG Analysis at AP7, said: “Biodiversity loss is a risk to our entire global economic system. This is a systemic risk which investors cannot avoid through diversification. Businesses must contribute to a nature-positive society in order to maintain long-term profitability. And this is most feasible to achieve with consistent regulations and policies around the world. It is in the interest of all companies, investors and governments.”

Bertrand Millot, Head of Sustainability at CDPQ, said: “Since COP15 and the 2022 Kunming-Montréal Global Biodiversity Framework, biodiversity is becoming an increasingly relevant factor in the financial sector. It is crucial to bring together stakeholders to support the transition to a more sustainable and resilient world and we need more proactive policies from governments – and greater collaboration between public authorities and private sector players – to accelerate progress in biodiversity preservation.”

Laura Hillis, Director of Climate and Environment at the Church of England Pensions Board, said: “The tragedy of biodiversity and nature loss will not be solved by waiting for the market in the absence of strong environmental policies and regulations. For us as stewards of long-term retirement savings, bold action from government holds the key to protecting long-term prosperity and wellbeing for our beneficiaries.”

Kim Farrant, General Manager Responsible Investment at HESTA, said: “Nature and biodiversity loss is not just an environmental crisis, it can pose a material financial risk to companies, shareholders and the global economy. To address this systemic challenge, governments must implement strong policies, transition plans and ambitious national targets. Our more than one million HESTA members are typically invested in a diverse range of global assets, so greater government action to halt and reverse biodiversity loss can help protect their retirement savings.”

Sandra Carlisle, Head of Responsible Investment at USS, said: “USS is a long-term, responsible investor with a legal duty to invest in the best financial interests of our members and beneficiaries, so we can pay pensions long into the future.  We recognise that loss of biodiversity and natural capital could pose a financial risk for companies, markets and economies.  While we, as asset owners, understand the urgency of addressing nature and biodiversity loss, governments play a pivotal role in enabling a collective transition to a nature-positive economy. Meaningful progress can only be achieved through coordinated action. By setting ambitious targets and establishing regulatory frameworks that empower businesses, investors, and communities to act, governments can enable all stakeholders to contribute effectively to this transition.”

The full statement can be read here.