A Rallying Call for Biodiversity: Why Finance Must Change
In Columbia this month, an important event is taking place: the sixteenth Convention on Biodiversity. While it may not possess the household name status of the UN Climate Change Conference, or COP, its role could prove indispensable. After all, remedying the climate crisis necessitates a resurgence in nature. And for that, financial backing is imperative.
Time is of the Essence: We Need Investment Now
In the last 50 years, we’ve tragically lost 73% of wildlife. And time is slipping through our fingers to instigate vital investments. Those who persist in financing companies that deforest, pollute, or obliterate wildlife are displaying an alarming void of leadership.
Biodiversity Loss Is Bleak: A Looming Threat
Should the biodiversity crisis continue unchecked, it threatens to ravage industries globally. The UN warns that one-eighth of all known species and plants are on the brink of extinction. Astonishingly, we’re consuming the resources of 1.75 Earths annually to satiate our current needs.
Agricultural Practices Must Transform
The crux of this plight lies in agriculture, especially the intensively destructive practices of deforestation, pesticide overuse, and soil degradation that accompany it. Alarmingly, 90% of tropical deforestation stems from agricultural expansion, as does 70% of lost terrestrial biodiversity.
Economic Irony: Profit and Losses in Agriculture
The relentless chase for "cheap" food has adulterated our very soil, slashing crop yields year on year. Consequently, prices soar and future harvests dwindle. A staggering USD 577 billion is lost annually, largely due to the dwindling numbers of pollinators like bees, often felled by pesticides. We’ve seen this manifest vividly in the recent surge in cocoa prices.
Decreasing Biodiversity and Rising Pandemics: A Costly Affiliation
Biodiversity loss doesn’t just concern plants; it makes us far more susceptible to pandemics akin to COVID-19. These events exacerbate as food sources dwindle and climate conditions worsen.
Financial Giants: Culprits Behind Environmental Degradation
The financial sector’s relentless profit-chasing has propped up agricultural enterprises to an unsustainable scale. Their investments have led to irreparable environmental damage. While these financiers may not wield the axes themselves, they’ve nevertheless funded those who do. True leaders within finance have the duty—and opportunity—to reverse this degradation. A straightforward solution is to cease funding companies that ravage our planet.
The Dawn of Positive Investment: Opportunities Await
I find it deeply heartening to witness the burgeoning opportunities in nature-positive investments. The financial world needs to pivot towards nurturing companies and projects that bolster nature’s restoration. For instance, one of our funds is backing a company growing seaweed, an innovation that not only serves as a sustainable fertiliser but also elevates marine biodiversity, enhances water quality, and captures carbon efficiently.
A Glimpse of Hope: Profit Meets Sustainability
These inspiring enterprises present economically viable solutions. They are poised to expand, needing just our support. Hitherto, if your advisory team isn’t presenting such opportunities, they must improve.
Seizing the Moment: Financing the Future
The Biodiversity COP16 this year challenges us to match words with actions. This juncture is pivotal. We must discontinue funding environmental desecration and channel our resources into eco-friendly solutions.
Collaborate for a Flourishing Tomorrow
Let us collaborate with businesses and institutions that aspire to foster profitable, nature-based investments. Now is the time, and it can only happen through the efforts of those like us, already wielding influence. Together, we can rejuvenate our planet for the generations that follow.
