Our sustainable transition capabilities

In this month’s instalment of our visual series on topical themes, we explore the world of biodiversity.

Russia’s invasion of Ukraine has led to ESG receiving widespread flak. While much of the criticism is unjustified, the episode underlines how many issues related to ESG are complex and involve trade-offs. Investment approaches may need fine tuning, especially if the geopolitical landscape continues to change so rapidly.

Resistance to antibiotics is already killing millions. Professor Dame Sally Davies, UK Special Envoy on Antimicrobial Resistance, spoke to AIQ on the latest developments to counter antimicrobial resistance Antimicrobial Resistance (AMR) in the UK and globally.

As life returns to some form of normality, governments are free to move their focus from COVID-19 to left-behind communities and delivering a just transition. This is important to secure long-term economic outcomes, but also comes with investment opportunities and risks.

Our air, weather, food, the health of diverse marine life and millions of jobs all depend on the ocean. But we have not done well as custodians of marine ecosystems. Here, we set out ten ways where human actions threaten the health of an essential environment.

As we learn to live with COVID-19, focus is returning to delivering a just transition. This is important to secure long-term investment outcomes, but also presents direct opportunities.

Growing awareness that natural systems are stressed or even close to breakdown is prompting asset managers to look closely at nature-based risks and investee companies to understand their environmental impacts and dependencies.

The concepts of biodiversity and ‘natural capital’ have been largely ignored by business and finance until recently. Investors are now starting to take the issue seriously and build it into their thinking.

Middle managers need to up their diversity, equity and inclusion game. They must think harder about roles models, succession planning, psychological safety and team dynamics to harness untapped human potential, explains Apiramy Jeyarajah.

Financial services businesses have begun the complex businesses of working out how to deliver on their net-zero ambitions and play their part in tackling climate change.

Asset managers must better explain how ESG can improve investment returns and make the world a better place. Clear guidance to help investors choose between funds is also required.

In an age of mass extinctions, policymakers, businesses and financial institutions are beginning to acknowledge the risks associated with biodiversity loss, along with the opportunities that arise from nature-positive solutions.

Healthy and happy employees, consumers, and communities are all critical ingredients in a company’s long-term success. Investors have a key responsibility in ensuring the rights of these groups are respected.

More than one fifth of the world’s largest listed companies have committed to net-zero targets, but few have detailed roadmaps to get there. Mirza Baig considers the challenges for investors managing transition pathways.

We explore how shifting diets can help create a more sustainable world.

Companies operating in the gig economy have been subject to industrial action and legal challenges. Workers say they are being denied basic rights; platforms reply this is the price of flexibility. But there is a viable middle-ground which can be beneficial for all, including investors.