Key Impact Points:
- Schroders’ inaugural TNFD-aligned Nature Report identifies land, sea, and freshwater use as top nature-related risks, alongside carbon emissions pressure.
- 58% of Greencoat’s assets now have habitat plans, responding to UK biodiversity regulations; Schroders’ Horsham campus achieved a 12.8% Biodiversity Net Gain.
- Mitsubishi Electric joins G7 Nature Alliance, advancing global efforts to integrate biodiversity into economic policy and decision-making.
Schroders Takes First Step in Nature Risk Disclosure
Schroders has released its first Group Nature report, marking the asset management firm’s formal alignment with the Taskforce on Nature-related Financial Disclosures (TNFD). The report, published June 2, outlines nature-related risks and dependencies across the firm’s investment activities—both public and private.
Andy Howard, Schroders’ Global Head of Sustainable Investment, emphasized the challenge ahead:
“We are proud of the steps we have taken and recognise the challenge – and the tools we will need to navigate it – will only grow.”
TNFD at the Core of Schroders’ Strategy
The TNFD helps companies evaluate financial exposure to nature loss. Schroders has adopted TNFD recommendations and aligned its engagement expectations with the Global Biodiversity Framework, which targets protecting 30% of land and sea by 2030.
Schroders’ proprietary tool, NatCapEx, is key to this effort. It assesses nature-related externalities for 9,000 public companies. The firm identified land use, sea use, and freshwater change as leading impact drivers, with carbon emissions cited as the most significant pressure. The materials, utilities, and energy sectors emerged as the largest contributors.
Private Markets and Corporate Performance
In its private investments, Schroders’ infrastructure arm Greencoat has been mapping biodiversity across solar projects. As of 2024, 58% of Greencoat’s infrastructure assets have habitat management plans, in line with the UK’s mandatory Biodiversity Net Gain regulation introduced in February.
At the corporate level, Schroders reported that waste output at its London HQ dropped by 36% since 2019, while recycling rates hit 92% in 2024. Its Horsham campus achieved a 12.8% Biodiversity Net Gain, surpassing its 10% target.
The Bigger Picture: Financial Risks and Nature-Positive Opportunity
The report cites World Bank estimates warning that partial ecosystem collapse could slash global GDP by 2.3% annually. Conversely, Schroders sees upside:
“Nature-positive practices could generate more than $10 trillion in annual business opportunities.”
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