May 27, 2022
Investing in nature: measuring what matters
How do we measure—meaningfully—the positive or negative impact of timberland and farmland assets on their local environments and communities?
The nature-positive ecosystem
A practical guide to mapping the major initiatives and their intended use
The nature-positive ecosystem map in action
Discover our on-the-ground approach to navigating the resources of the nature-positive ecosystem.
Nature action is essential—and complicated
That’s why we’ve worked with our long-term partners in sustainability at the Delphi Group to map the landscape of opportunities for nature action.
The nature-positive agenda
Nature positive means halting and reversing the loss of nature at a planetary level. By 2030, the global goal for nature is to have regenerated and preserved our natural environment through improvements in the health, abundance, diversity, and resilience of species, populations, and ecosystems.¹
Nature underpins business
Nature significantly contributes to the global economy
Nature provides vital indirect benefits to society, with the estimated value of ecosystem services2 being US$125 trillion. The degradation and loss of nature entail a direct and significant risk for human well-being and our economic system.
80% of threatened and near-threatened species and ecosystems are endangered by at least one of three systems:
1 Food, land, and ocean use
2 Infrastructure and the built environment
3 Energy and extractives
Fortunately, these systems also have the greatest potential for co-creating nature-positive pathways.
Nature-positive momentum
Nature-positive momentum
Public and private sectors are recognizing the extent of the risks of nature loss and looking to address it with commitments to nature positive. International policy momentum is being matched by more national policies, and regulatory action and incentives related to nature.
July 2021: G7 leaders commit to aligning with global ambitions to halt and reverse biodiversity loss by 2030.
October-November 2021: The COP26 climate summit acknowledges the role of nature-based solutions for the first time in the Glasgow Climate Pact.
92% of countries' Nationally Determined Contributions include measures to tackle nature loss.
89 financial institutions representing US$13 trillion have signed the Finance for Biodiversity Pledge as of April 2022, calling on political leaders to set effective measures for reversing nature loss.
Since 2004, there has been a marked increase in listed companies that have adopted formal biodiversity policies.
Businesses and investors are scaling up ambition
Tools and initiatives are rapidly emerging to support stakeholders in understanding, measuring, and reporting their impacts and dependencies on nature.
Global goal for nature
Global goal for nature: nature positive by 2030
Often, the value provided by natural capital, biodiversity, and ecosystem services has gone unrecognized and as a result, their protection has received little attention and investment. Today, a shift is occurring as the recognition of nature’s economic importance moves to the fore. By 2030, the global goal for nature is to have regenerated and preserved nature through improvements in the health, abundance, diversity, and resilience of species, populations, and ecosystems.
Modified from A Global Goal for Nature, as of May 2022.
Biodiversity loss and natural resources crises are among the top five “existential threats” facing the world over the next 5 to 10 years—ahead of climate action failure.
The World Economic Forum’s Global Risks Report 2021.
Centered around four organizing stages, the nature-positive ecosystem map builds on WBCSD’s nature-positive building blocks, the Science Based Targets for Nature Initiative’s Initial Guidance for Business, and Business for Nature’s steps for becoming nature positive. Our breakdown provides a more complete picture of the elements that support their respective steps and blocks to provide a single source for the tools that support this analysis.
Commit
This segment contains initiatives that help businesses set targets for halting and reversing nature loss.
Collaborate
This loop contains initiatives that provide businesses with partnership, networking, and knowledge-sharing opportunities.
Assess and act
This loop supports organizations in evaluating their relationship with nature.
Disclose
The elements in this stage support businesses in reporting nature-related financial risks.
Avoid
Companies should take action by first avoiding impacts on nature.
Reduce
Where prevention isn't possible, companies should minimize their impact.
Restore
Companies should take action to restore affected ecosystems to their pre-affected state.
Regenerate
The affected ecosystems are then encouraged and enabled to regenerate themselves.
Transform
Companies must contribute to systemwide change.
Our related resources
Our statement on nature
As part of our commitment to helping our clients achieve their objectives and build resilient portfolios, we're committed to positively affecting nature and biodiversity through our business and investment activities.
Our sustainability policies and disclosures
We maintain sustainability policies and practices. We do this to help ensure that our clients and stakeholders have clear and relevant information about our sustainability strategy and activity.
Our impact: sustainable investing case studies
We believe active ownership practices are at the center of good stewardship, helping drive strong risk-adjusted investment return potential for our clients while we seek to make a positive impact on the environment and society.
Related viewpoints
July 27, 2021
Valuing biodiversity: the tools at our disposal
We discuss an investor’s perspective of the current tools, incentives, and initiatives available to value biodiversity.
May 5, 2022
Stewardship and sustainability performance
As a global asset manager, we’re mindful of our obligations to endeavor to manage the sustainability challenges that we face. In our view, strong stewardship practices are key to building more resilient portfolios and creating long-term value.
Important disclosures
While the Delphi Group (Delphi) is a co-author of this material and serves as a collaborator with respect to the mapping of the nature-positive ecosystem, the information provided is not intended to serve as an endorsement or recommendation by Delphi of the advisory services provided by Manulife.
It should not be assumed that any ESG initiatives, standards, or metrics described herein will apply to each asset in which Manulife invests or that any ESG initiatives, standards, or metrics described have applied to any individual prior investment of Manulife. Not all strategies or investments will align with the nature-positive ecosystem described herein and there is no guarantee that any initiatives or anticipated developments described herein will ultimately be successful or achieve anticipated outcomes. ESG is only one of many considerations that Manulife takes into account when making investment decisions, and other considerations can be expected in certain circumstances to outweigh ESG considerations. Any ESG initiatives described will be implemented with respect to a portfolio investment solely to the extent Manulife determines such initiative is consistent with its broader investment goals. There is no guarantee that the evaluation of ESG characteristics will be additive to a strategy's performance. ESG is not a uniformly-defined characteristic and information used to evaluate ESG characteristics may not be readily available, complete, or accurate, and may vary across providers and issuers. Because of the subjective nature of ESG integration, there can be no guarantee that ESG factors considered will reflect the beliefs or values of any particular client.
The Delphi Group is a pioneer in sustainability and climate consulting, providing services and solutions to corporations and public sector organizations for over 30 years. As a recognized leader in climate change, corporate sustainability, green and circular economy, innovation and cleantech, and net-zero services, Delphi helps organizations transform how they generate value while balancing environmental, social and economic priorities. A registered BCorp, Delphi is part of a collective of organizations that includes GLOBE Series, CBSR and Leading Change Canada. Together we are focused on achieving our vision: to achieve a more sustainable, prosperous, and socially just future in a generation. Additional information about The Delphi Group may be found at www.delphi.ca
Important disclosures
A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange-trading suspensions and closures, and affect portfolio performance. For example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other preexisting political, social, and economic risks. Any such impact could adversely affect the portfolio’s performance, resulting in losses to your investment.
Investing involves risks, including the potential loss of principal. Financial markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. These risks are magnified for investments made in emerging markets. Currency risk is the risk that fluctuations in exchange rates may adversely affect the value of a portfolio’s investments.
The information provided does not take into account the suitability, investment objectives, financial situation, or particular needs of any specific person. You should consider the suitability of any type of investment for your circumstances and, if necessary, seek professional advice. This material is intended for the exclusive use of recipients in jurisdictions who are allowed to receive the material under their applicable law. The opinions expressed are those of the author(s) and are subject to change without notice. Our investment teams may hold different views and make different investment decisions. These opinions may not necessarily reflect the views of Manulife Investment Management or its affiliates. The information and/or analysis contained in this material has been compiled or arrived at from sources believed to be reliable, but Manulife Investment Management does not make any representation as to their accuracy, correctness, usefulness, or completeness and does not accept liability for any loss arising from the use of the information and/or analysis contained. The information in this material may contain projections or other forward-looking statements regarding future events, targets, management discipline, or other expectations, and is only current as of the date indicated. The information in this document, including statements concerning financial market trends, are based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. Manulife Investment Management disclaims any responsibility to update such information.Neither Manulife Investment Management or its affiliates, nor any of their directors, officers or employees shall assume any liability or responsibility for any direct or indirect loss or damage or any other consequence of any person acting or not acting in reliance on the information contained here. All overviews and commentary are intended to be general in nature and for current interest. While helpful, these overviews are no substitute for professional tax, investment or legal advice. Clients should seek professional advice for their particular situation. Neither Manulife, Manulife Investment Management, nor any of their affiliates or representatives is providing tax, investment or legal advice. This material was prepared solely for informational purposes, does not constitute a recommendation, professional advice, an offer or an invitation by or on behalf of Manulife Investment Management to any person to buy or sell any security or adopt any investment strategy, and is no indication of trading intent in any fund or account managed by Manulife Investment Management. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Diversification or asset allocation does not guarantee a profit or protect against the risk of loss in any market. Unless otherwise specified, all data is sourced from Manulife Investment Management. Past performance does not guarantee future results.
Manulife Investment Management
Manulife Investment Management is the global wealth and asset management segment of Manulife Financial Corporation. We draw on more than a century of financial stewardship to partner with clients across our institutional, retail, and retirement businesses globally. Our specialist approach to money management includes the highly differentiated strategies of our fixed-income, specialized equity, multi-asset solutions, and private markets teams—along with access to specialized, unaffiliated asset managers from around the world through our multimanager model.This material has not been reviewed by, is not registered with any securities or other regulatory authority, and may, where appropriate, be distributed by the following Manulife entities in their respective jurisdictions. Additional information about Manulife Investment Management may be found at manulifeim.com/institutional.
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