According to the definition of the United Nations Convention on Biological Diversity, also adopted by ISPRA, biodiversity refers to the variety and variability of living organisms and the ecological systems in which they exist. It includes diversity at the genetic, species, and ecosystem levels.
This term refers to the richness of life on Earth: the millions of plants, animals, and microorganisms, the genes they contain, and the complex ecosystems they form within the biosphere. This diversity concerns not only the form or structure of living organisms, but also their abundance, distribution, and interactions among the various components of the system.
Biodiversity plays an essential role in the continued development of terrestrial and marine ecosystems, upon which the survival of the planet and human health depend.
However, a progressive decline in biodiversity has been observed for decades. Its loss represents one of the main environmental and social risks at the global level. The rapid degradation of ecosystems threatens essential services for life on Earth, such as climate regulation, food production, and the stability of socio-economic systems.
«The deterioration of biodiversity represents one of the greatest global challenges of our time and constitutes an increasingly significant systemic risk. This erosion is occurring at an unprecedented rate in human history, with the irreversible loss of plant and animal species, habitats, and essential ecosystems. At Etica Funds, biodiversity has long been a core ESG priority, which is also reflected in our investment processes, where potential negative impacts on ecosystems are taken into account. Biodiversity loss can, in fact, translate into significant financial risks for investors. Companies and investors cannot afford to ignore this risk factor, which is already influencing how businesses operate and how capital is allocated.»
Roberto Grossi
General Manager of Etica Funds
Etica Funds’ biodiversity strategy
Aware of the growing importance of this issue, as early as 2020 Etica Funds became the first Italian asset management company to sign the Finance for Biodiversity Pledge, the first international initiative bringing together financial institutions committed to the protection of biodiversity.
Through this commitment, Etica Funds has embarked on an increasingly structured path aimed at integrating the preservation of nature into its investment processes.
Objectives of the biodiversity strategy
Etica Funds’ strategy has been developed in line with the five objectives of the Finance for Biodiversity Pledge, which guide investors’ actions in contributing to the protection of nature.
A first area of action concerns collaboration and knowledge sharing. Etica Funds participates in initiatives with other financial market participants to develop assessment methodologies, biodiversity-related metrics, and financial approaches capable of generating a positive impact on ecosystems.
A second pillar relates to engagement with companies. Biodiversity-related criteria are progressively integrated into ESG policies, with the aim of encouraging companies to reduce their negative impacts on ecosystems and increase their positive contributions to biodiversity.
Another key element is the assessment of investment impacts. Investment activities are analyzed to identify the most significant impacts on biodiversity and the main drivers contributing to nature loss.
The strategy also provides the definition of targets based on the best available scientific evidence, aimed at increasing positive impacts and reducing the most significant negative impacts on biodiversity.
Finally, Etica Funds is committed to ensuring transparency and reporting, by publishing annual information on progress made and on the contribution of its financing and portfolio investment activities to global biodiversity protection goals.
Initiatives and campaigns for climate and biodiversity protection
Etica Funds’ commitment to protecting natural capital is also reflected in its participation in international initiatives and campaigns dedicated to climate and biodiversity protection.
Below are some of the main initiatives to which Etica Funds is a signatory.
Biodiversity reporting
Activities carried out by Etica Funds for the Finance for Biodiversity Pledge
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