ASX companies fail to integrate biodiversity

Yasmine Raso

Senior Journalist, Financial Newswire

9 December 2022

A recent survey conducted by specialist active equity investment manager, Martin Currie, has found only a minority of the top 200 Australian Securities Exchange (ASX) listed companies have policies to address biodiversity impacts.

While 82 per cent of the 92 ASX 200 companies that responded to the survey said they are aware they have “a role to play in protecting and enhancing biodiversity”, only 39 per cent have biodiversity as a “material component” of a policy and were not committed to developing one in the next two years.

“We found the property, mining and energy sectors to be advanced in considering biodiversity in their daily operations, and many companies in these sectors have a biodiversity policy or have biodiversity as a material component of another policy,” Martin Currie’s Lead Portfolio Manager for the Sustainable Equity Strategy, Will Baylis, said.

“We believe that we have a responsibility to ensure that companies we invest in on behalf of our clients are considering the potential impact of their business on biodiversity.

“We will also be using our extensive company engagement program with boards and management to provide guidance and to push for further positive change.

“We still have a lot of work to do to get a better understanding of some of these issues, but one thing is clear without biodiversity the global economy would simply not operate as we know it.”

The investment manager said the survey confirmed there was a “lack of consensus” around how to assess and manage the risks and opportunities related to biodiversity. The poll also revealed how certain organisations see financial opportunities within biodiversity, including banks and insurance companies developing ecosystem services and biodiversity or carbon credits.

“We surveyed the management of the top 200 ASX companies with detailed questions about their management of biodiversity in their daily operations and in their strategic planning,” Portfolio Manager at Martin Currie, Naomi Bant, said.

“Over the past few years, there’s been a lot of focus and progress on companies reducing their carbon emissions, but the reality is climate change and biodiversity are inextricably linked.

“We believe protecting biodiversity is the next big issue and this will get more attention with the Taskforce for Nature-related Financial Disclosures (TNFD) final recommendations next year.”