Integrating biodiversity into private equity. Feedback and case studies

Detalles

The integration of biodiversity issues by private capital actors is a major challenge, in response to new regulations and the urgency of the ecological crisis.

In 2022, the Biodiversity Working Group of the France Invest Sustainability Commission published the first guide dedicated to this issue. This guide presents the different approaches to integrating biodiversity into private capital at each stage of the investment cycle, while providing essential keys to understanding the concepts linked to biodiversity (ecosystem services, risks linked to biodiversity, impacts and dependencies), regulations and the main tools for measuring the biodiversity footprint.

This post is a continuation of that guide. It presents a concrete transition from theory to practice, focusing more particularly on a crucial, both necessary and preliminary step for the development of a biodiversity strategy by portfolio management firms: qualitative analysis and quantitative impact (and dependencies) on biodiversity, both at the level of managed portfolios and beneficiary firms.
The objective of this publication is threefold:
1. Test tools that can be used to assess biodiversity issues, either at the level of private equity management firms' portfolios or at the level of their portfolio firms.
2. Support the development of a biodiversity footprint methodology adapted to private capital, which takes into account the associated constraints.
3. To disseminate the lessons learned from this work, in order to allow the entire profession to address this important issue.
The guide is available in French and English.