Biodiversity to tackle climate change
Source: Asia Insurance Review | Jul 2023
Investors have developed strategies around climate-related risks, policies and disclosures, but haven’t put the same level of focus on biodiversity and nature-related risks according to Aon’s The One Brief weblog.
The recent weblog said, “Investing in biodiversity can help companies better achieve climate-related goals. Prioritising biodiversity in investments starts with assessing risks, understanding opportunities and having active ownership over these initiatives.”
Addressing climate change often focuses on measuring and reducing carbon emissions. Regulation and the availability of data have also helped centre discussions on this topic. Biodiversity and climate change are inextricably linked – plants, oceans, animals, microorganisms and soil all play a role in absorbing greenhouse gasses. Depleting the natural environment also means sacrificing an effective method of carbon capture.
The weblog said based on the world’s population and the current rate of consumption, however, humans have lived way beyond the planet’s means. As discussed in a recent Aon report, humans overused the planet’s resources 1.75 times faster than ecosystems can regenerate.
To tackle climate change more effectively, companies should prioritise replenishing biodiversity as well as reducing carbon emissions. A