Recently, we raised our biodiversity ambitions to help curb the loss of plant and animal life and to protect ecosystems, which are being lost at a faster rate than ever before. We have already initiated a targeted active ownership initiative, through which we will enter into dialogue with 30 companies to help them begin minimising the impact on biodiversity in forest and ocean environments, set targets and improve reporting in this area.

Now we are taking one step further by signing up to the Finance for Biodiversity Pledge. This will set long-term wayposts for our ambition that our investments will contribute to protecting and restoring the world’ s biodiversity, which is important for future-proofing the value of our customers’ investments. Biological diversity is an important factor for the companies we invest in because they depend on raw materials and other materials from the natural environment to operate their businesses and create returns for our customers.

“When we set requirements for companies, we have to practise what we preach. Companies rely on natural resources to produce and deliver their goods and services, and we have a responsibility as an investor to elevate biodiversity into the boardroom and set targets for how our investments can contribute positively to diversity and use nature’s resources more efficiently,” explains Søren Lockwood, CEO of Danica Pension.

The decline in biodiversity constitutes a socio-economic and an investment-related problem – a fact that is supported by analyses from the World Economic Forum. These analyses show that a total of 50% of the worlds GDP is reliant on natural resources, and if biodiversity is not restored, there will be major consequences for global prosperity and, subsequently, for pension savings.

“Loss of biodiversity represents a risk for our investments, which is why we want to contribute so that, for example, agriculture, fishing, the pharmaceutical industry and the construction and energy sectors protect biodiversity and don’t undermine the Earth’s ecological foundation enabling the businesses in these areas to continue to operate. This requires a rethink of business models, supply chains and product development. The depletion of nature must be stopped so that biodiversity can be restored. This is the path to securing robust investments for our customers and ensuring sustainable economic growth for the benefit of all – now and in the future,” says Søren Lockwood.

A need for joint solutions

When it comes to biodiversity, there are major challenges in terms of insufficient data, assessment methodologies and knowledge, but these can be addressed and solved through partnerships and through increased collaboration between businesses, politicians and the financial sector.

“As an investor, we need to have access to better data and more knowledge about what’s good and bad for diversity, companies’ biodiversity risks, and how we most effectively can make a difference. This requires that we collaborate and share knowledge, test solutions and assessment methodologies, and begin developing new technologies. Biodiversity is complex, so it’s even more important that we all begin working systematically to restore it as quickly as possible. This needs to be done on a scientific basis and using data – this is the formula that will enable businesses to operate in harmony with nature, ensure protection of pension investments, and uphold our living standards,” concludes Søren Lockwood.

We are currently analysing and measuring how our investments are affecting biodiversity and identifying where action needs to be taken to reduce the overconsumption of natural resources and to future-proof our customers’ investments.