1. Research

dbSustainability: Biodiversity - From insects to corporate giants

Olga Cotaga

Luke Templeman

In this episode
In this episode we discuss the corporate response to growing biodiversity concerns, which has been slow. The problem is that companies with higher biodiversity risks can find their stock prices underperform. Customer and political scrutiny are amplifying the situation.

dbSustainability: Biodiversity - From insects to corporate giants
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What we discuss
  • We examine the impact of biodiversity risk and controversies on corporates. We look at the stock market returns of companies with high and low risk. We also note the sharp change in market direction over the last six months.
  • We examine the 20 most biodiverse countries in the world. In particular, we note that half are top-30 global exporters, including Brazil and China. Thus, we argue that if Western corporates are to address the biodiversity concerns of their customers and investors, they have no choice but to engage with emerging markets. This could encourage a new era of trade based on shared incentives.
  • Finally, we identify three high-impact areas of biodiversity that affect almost all corporates: commodities & energy, packaging, and food. We highlight the trade-offs as corporates navigate these issues, and reputational stakes may be higher than ever. We also predict an increased focus on the provenance of everyday items.

 

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