Climate Change and Biodiversity

The protection of biodiversity and climate change are two deeply interconnected environmental challenges, which Etica Funds considers essential to integrate into its investment processes.

Biodiversity and climate change are closely interconnected: the loss of species and habitats accelerates climate change, while rising temperatures and environmental alterations threaten species survival.

Global warming is rapidly altering environmental conditions, exceeding the adaptive capacity of many species. Melting ice, desertification, sea level rise, and ocean acidification are making certain habitats uninhabitable. Biological cycles—such as migration, flowering, and reproduction—are no longer synchronized with the climate, while many species attempt to shift towards cooler latitudes or higher altitudes; those unable to do so face the risk of extinction. The most sensitive ecosystems, such as coral reefs and tropical forests, are among the most vulnerable.

At the same time, biodiversity loss reduces the efficiency of ecosystems in regulating the climate. Forests, oceans, soils, and peatlands release carbon and absorb less CO₂, soil degradation decreases fertility and carbon storage capacity, and the collapse of coral reefs reduces CO₂ absorption and the regulation of global temperatures.

The result is a vicious cycle: the climate changes, ecosystems degrade, biodiversity declines, and the capacity to sequester CO₂ is further reduced, accelerating climate change. For this reason, protecting and restoring natural capital is not only an environmental priority, but a fundamental step in safeguarding human health, strengthening ecosystems, and ensuring the resilience of the planet.

Etica Funds’ commitment


This is a marketing communication.

Marketing communication by Etica SGR S.p.A. Investors should only enter into an investment transaction after fully understanding its overall characteristics and the level of exposure to the related risks, by carefully reading the KID and the Prospectus of the individual funds, which – together with information on sustainability aspects pursuant to Regulation (EU) 2019/2088 – are available on the website www.eticasgr.com. The recipients of this message assume full and sole responsibility for the use of the information contained in this communication and for any investment decisions made on the basis of it, as any use of this communication to support investment decisions is not permitted and is entirely at the investor’s own risk.