Nature & Biodiversity

A new frontier of sustainable investing

How can nature and biodiversity be translated into meaningful investment decisions?

Explore our research into the data, metrics and investment implications shaping this emerging field.

THE CURRENT LANDSCAPE

The Investment Challenge

Drawing on years of environmental data expertise, Osmosis is at the forefront of exploring this new frontier: working to integrate biodiversity with the rigour and credibility our investment approach demands.

Biodiversity is multi-dimensional

Biodiversity spans variation within species, between species and across ecosystems. It also encompasses the interaction between living systems and factors such as water, climate and habitat. That complexity makes it difficult to capture through a single measure.

Materiality works both ways

Companies depend on nature for resources and ecosystem services, while their activities can also affect the natural systems on which they rely. For investors, the challenge is identifying where these dependencies and impacts become financially material.

What are the current limitations?

'Off-the-shelf' impact and dependency models are often incomplete in their impact attribution, based on patchy and biased biodiversity data, have limited verification and may miss ecological sensitivities.

OUR APPROACH

Beyond Single Materiality: Navigating Biodiversity in Investment Portfolios

Osmosis is developing a systematic approach to biodiversity that combines our expertise on environmental pressures, asset-level location data, evaluation of corporate policies, ecosystem services mapping and quantitative investment analysis.

Rather than starting with a single biodiversity score, we test which measures are scientifically credible, financially relevant and robust enough to inform portfolio construction. The aim is to identify where biodiversity-related dependencies and pressures may reveal risks and opportunities that markets are not fully pricing.

“Biodiversity has no single universal metric. It is tangled and multidimensional, reflecting nature’s endless forms across our planet. That is precisely what makes translating it into robust investment decisions so challenging.”

Benjamin Stimpson

Environmental Analyst, Equities