Tackling three main drivers of biodiversity loss with listed equities

  • 22 June 2023 (5 min read)

Global human population is increasing rapidly. This is in turn driving greater biodiversity loss, as more species are lost due to increased human resource and habitation requirements.

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The size and breadth of biodiversity loss must be halted and addressed now, and on a sufficient scale to achieve the targets arising from the COP15 biodiversity agreement2. This scalability can be achieved through investing in listed equity companies. 


There is no net zero without nature

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The agriculture sector is to biodiversity what the energy sector is to climate change – namely, its biggest challenge. 

Efficient and precise production is becoming a top priority as well as reducing food waste to achieve a more sustainable agriculture system, allowing farmers to use less scarce land and water resources as well as reducing pollution from chemical fertilisers and pesticides.

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80% of deforestation is linked to agriculture3

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1/3 of the food produced is wasted

 

Changing human food consumption is key

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 This massive land use only fulfils 17% of calories needed globallyand only provides 33% of global protein4


Fresh Water scarcity

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Most of the water on Earth is saltwater,  with freshwater making up just 3%5

15% of our water supply is lost every year6

70% of all fresh water is used by agriculture7

 

Innovative technology such as smart metering and analytics help increase the efficiency of water systems by identifying leaks and reducing water loss.

By 2050 there could be more plastic than fish in the sea8

Fossil-fuel derived plastic dominates the packaging market. Manufacturers are working on the superior circularity features of aluminium and glass.

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Consumer behaviour is changing to lessen environmental impact 

Digital peer-to-peer platforms promote pre-owned goods, can reduce waste, and promote more sustainable consumption

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Innovations 
in pulp- and paper-based products as well as bio-based plastics are also emerging as credible alternatives.9


As we move to a net-zero economy, recycling of scarce resources will need to increase to meet demand as well as reduce the impact on the environment

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Sources:

  • (1) WWF Living Planet Report 2022. For illustrative purposes only
  • (2) https://www.unep.org/news-and-stories/story/cop15-ends-landmark-biodiversity-agreement
  • (3) Citi GPS, Food and Climate Change, 2022
  • (4) Ibid.
  • (5) BofAM, The World Is Not Enough - Scarcity Primer, 2022
  • (6) Ibid.
  • (7) WWF, 2022
  • (8) BofAM, The World Is Not Enough - Scarcity Primer, 2022
  • (9) https://www.circularonline.co.uk/news/62-of-businesses-to-invest-more-in-sustainable-packaging-materials/
  • (10) BofAM, IEA, Growth of selected minerals in 2040 vs 2020 in «Sustainable Development Scenario».
     
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