A global coalition of investors, including 27 pension funds and asset owners, has urged governments around the world to take "ambitious" policy and regulatory action to halt and reverse global biodiversity loss.

The statement, signed by investors from Australia, Canada, Denmark, the Netherlands, Sweden, Switzerland, the US and the UK, called for a ‘whole of government’ approach to tackling the biodiversity crisis to protect investment returns and investor confidence.

As part of this, it urged governments to set "ambitious" national targets, including sector transformation plans; implement mandatory disclosure on nature for companies.

The statement also encouraged governments to establish regulation that addresses the five drivers of biodiversity loss, and to develop and scale financial mechanisms for nature.

Five pension investors are leading on the initiative: the Church of England Pensions Board (UK); the Universities Superannuation Scheme (USS) (UK), AP7 (Sweden); CDPQ (Canada); and HESTA (Australia).

Commenting on the call for action, USS head of responsible investment, Sandra Carlisle, said: “We recognise that loss of biodiversity and natural capital could pose a financial risk for companies, markets and economies.

"While we, as asset owners, understand the urgency of addressing nature and biodiversity loss, governments play a pivotal role in enabling a collective transition to a nature-positive economy.

"Meaningful progress can only be achieved through coordinated action. By setting ambitious targets and establishing regulatory frameworks that empower businesses, investors, and communities to act, governments can enable all stakeholders to contribute effectively to this transition.”

Church of England Pensions Board director of climate and environment, Laura Hillis, also argued that "bold action" from government holds the key to protecting long-term prosperity and wellbeing for its beneficiaries.

“The tragedy of biodiversity and nature loss will not be solved by waiting for the market in the absence of strong environmental policies and regulations," she stated.

Adding to this, AP7 manager ESG analysis, Flora Gaber, said: “Biodiversity loss is a risk to our entire global economic system.

"This is a systemic risk which investors cannot avoid through diversification. Businesses must contribute to a nature-positive society in order to maintain long-term profitability.

"And this is most feasible to achieve with consistent regulations and policies around the world. It is in the interest of all companies, investors and governments.”

This article originally appeared on our sister title, PensionsAge.

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