Why biodiversity matters for pensions
Biodiversity underpins the health of our ecosystems and the services they provide — yet it's in crisis. The World Economic Forum's Global Risks Report 2023 ranked biodiversity loss and ecosystem collapse as a top global risk over the next decade. Approximately 55% of the global GDP depends on nature, so it is increasingly clear that nature loss poses material financial risks — especially for long-term investors like pension funds.
Pension schemes must understand how their investments both impact and depend on nature. This means recognising biodiversity as a systemic risk — and acting accordingly.
Resources for trustees and asset owners
Our sustainable finance team works with the finance sector to understand how investment portfolios impact and depend on nature. Below are key resources to help financial institutions identify nature-related risks, build internal capacity, and take action on biodiversity loss — including a practical guide for pension trustees and a real-world case study with Scottish Widows.
Practical Guide: Why Biodiversity Matters
Developed in partnership with CACEIS Investor Services, the guide provides a handy starting point for the pensions industry, demystifying the complex topic and providing a clear framework to approach the issue practical insights and tips to trustees in the form of a step-by-step approach for pension trustees to comprehensively tackle biodiversity loss and nature risk in investments offers, covering essential aspects such as:
- Current challenges of biodiversity risk
- The definition and importance of biodiversity
- Key drivers of biodiversity loss
- Risks to pension schemes
- A seven-step process for integrating biodiversity into decision-making
Case Study: Scottish Widows Investment Portfolio Assessment
Published in April 2025, our collaboration with Scottish Widows explores how a large UK asset owner assessed biodiversity impacts and dependencies across its diversified investment portfolio. This pioneering case study offers practical lessons for asset owners starting to assess nature-related risks using open-access tools, sector-level insights, and the Taskforce for Nature Financial Disclosure (TNFD) LEAP framework. It sheds light on key challenges and demonstrates how even early-stage analysis can support informed decision-making and build internal capacity for future action.
The case study shows how an investor can:
- Identify high-impact and high-dependency sectors using the ENCORE tool
- Understand portfolio exposure to the five key drivers of biodiversity loss
- Translate findings into actions for engagement, stewardship and strategy
- Navigate data gaps and select fit-for-purpose assessment methods
- Build internal capability for nature-related risk management
Advisory support for responsible investment
We help financial institutions assess and mitigate nature-related risks across their investment and lending portfolios. Through science-based insights and practical data, we enable active stewardship that aligns with global biodiversity goals and your clients’ environmental and social values. Our responsible investment advisory services support decision-making at every stage — from portfolio analysis to engagement strategy — ensuring your investments contribute to a nature-positive future.
For enquiries or collaboration opportunities, contact our Sustainable Business & Finance team.
Working with the private sector to protect and restore biodiversity and support conservation enterprise.