Post by Max Lulavy

In our recent analysis, we set out to challenge a common assumption in sustainable investing: that deforestation is the dominant biodiversity risk for most portfolios. What we uncovered tells a different story. Using our proprietary biodiversity risk assessment framework, we found that for a major UK pension provider, water stress—not deforestation—was the portfolio’s largest nature related risk exposure. This aligns with broader market patterns: 35% of the MSCI ACWI faces high or very high water related risk, compared with 14% for deforestation. As concerns related to biodiversity grow in materiality across asset classes, frameworks like ours can help investors better identify, manage, and mitigate nature-related risks—while positioning for more resilient long term returns. https://lnkd.in/gnvKUPnF