Finnish pension company Varma has published a study on the attitudes and preparedness of the companies it invests in for the risks related to the loss of biodiversity.

The analysis, which covers the pension company’s listed equity investments, found that just over a quarter (27 per cent) had set goals to take nature loss into account in their operations.

However, while 51 per cent of the companies expressed their intention to take measures to consider or compensate for biodiversity, more than a fifth (22 per cent) had not considered biodiversity issues at all.

Furthermore, only 5 per cent of the companies surveyed had a concrete action plan to address biodiversity risks.

“Although only a small part of the companies had an action plan, it was noteworthy that many companies had committed or were about to commit to taking biodiversity into account in their operations,” commented Varma director responsible for responsibility and communication, Hanna Kaskela.

“Awareness of the effects and risks of loss of nature has only recently broken through. At Varma, biodiversity work is as integral a part of our environmental responsibility as climate work.

“We want to know how the companies that are our investment targets feel about things that are important to us.

“So far, it is challenging for investors to identify progressive companies in terms of nature loss. It is easier to identify the risks of climate change especially related to extreme weather phenomena, and in addition, there are already standardised measures for assessing the effects of climate change. When assessing the effects of nature loss, one has to deal with complex questions.”

Varma found that European companies were more progressive on biodiversity loss than firms operating in North America and Asia.

Meanwhile, forestry companies, construction material manufacturers and electricity producers were the most progressive types of companies, while companies operating in the transport, beverage and textile sectors were the most vulnerable.

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