First Sentier Investors, an investment arm of Japan’s Mitsubishi UFJ Trust and Banking Corporation, has launched investor guide for asset owners to identify and access biodiversity risks for companies in their portfolios.
The guide provides “step-by-step outlines, including which resources can be used at each step, for investors to undertake nature-related company assessments and develop engagement approaches to biodiversity risks”, First Sentier Investors says in a statement on September 7.
The guide also maps a due diligence framework for appraising and engaging on three “critical” issues, namely identification of sector exposure, assessments of companies, and company engagement.
“There is growing global momentum to address nature and biodiversity risks, however the topic is still relatively new for many investors. While there is a data challenge, knowing what tools are available and when to use them can also be a roadblock,” Kate Turner, global head of responsible investment for First Sentier Investors, says in the statement.
“This guide provides an outline of the available resources for assessments, including raising alternate ways to navigate data issues,” she adds.
First Sentier Investors had US$148.3 billion of assets under management as of June 2023.
