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Investors grapple with complexities of biodiversity

Businesses’ impact on nature poses risks that are both severe and hard to quantify

“Irreversible consequences for the environment, humankind, and economic activity, and a permanent destruction of natural capital.” That is how the World Economic Forum characterises biodiversity loss in its 2022 Global Risks Report. No wonder investors are worried: not only is it their planet, too, but they also have portfolios to manage.

And, given the complexity of measuring nature and the impact of its loss, the finance sector can be forgiven for feeling daunted.

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