MSCI in practice: Identifying nature and biodiversity impacts and risks in your portfolio

Biological diversity was rapidly declining — and becoming a material risk to investors. As a consequence, demand for advanced tools to measure impact and manage biodiversity risks was on the rise.

Investors striving to quantify the impacts of their investments on biodiversity across sectors or portfolios increasingly relied on biodiversity footprinting. This approach generally started by identifying the various direct drivers of biodiversity loss, known as pressures, caused by a company.

MSCI Biodiversity Footprint Metrics help investors quantify the impacts of their investments on biodiversity across sectors or portfolios and enhanced their TNFD and CSRD reporting. Our bottom-up approach meant our model uses granular geolocation data, combined with in-house land use and water consumption estimation models.

In this virtual event, our experts showcased the applicability of these metrics through insightful use cases.