This month, the 16th Congress on Biodiversity will be held in Colombia. It is less famous than its sibling, the United Nations Conference of the Parties on Climate Change (usually simply referred to as COP). But perhaps it’s more important. After all, the climate crisis can only be reversed through nature’s restoration, and for that we urgently need funding.
With 73% of our wildlife already lost in the past half-century, we have precious years left to make essential investments. Those who continue to invest in companies that clear forests, pollute, and destroy wildlife are demonstrating a catastrophic lack of leadership.
Financing for unsustainable agriculture must end now.
The collapse of biodiversity is extremely serious, and if it continues at this pace, it will have a serious impact on all industries and services. According to United Nations data, one-eighth of known species and plants are now nearing extinction. And at this rate, we are using up the resources of 1.75 planets every year for our current needs.
Agriculture is at the heart of the problem. Or, more specifically, the intensive deforestation, pesticide use, and soil degradation associated with large-scale agriculture. Alarmingly, agricultural expansion alone is responsible for 90% of tropical deforestation and 70% of terrestrial biodiversity lost.
Ironically, the desire for profits and an endless supply of “cheap” food has depleted the soil, resulting in fewer crops year after year, higher prices, and the loss of future harvests. Approximately $577 billion is lost annually due to the loss of pollinators, which are often killed by pesticides. To observe this development in real time, one need only look at the spike in cocoa prices earlier this year. Rural farmers in Africa struggle with extreme weather, pollinator declines, and widespread faunal diseases.
Those who fund the destruction of nature are not leaders.
But it’s not just plants. With increasing biodiversity loss, we are much more likely to experience another pandemic or epidemic like COVID-19. And each situation will become more difficult than the previous, as food sources dry up, disease worsens, and weather becomes more extreme.
Finance was the driving force behind this. The financial sector’s relentless pursuit of profit has enabled agricultural enterprises to expand and destroy the planet far more than they could on their own. Our industry may not have cut down the trees, but we paid for the axe. But true leaders in this field now have the duty and privilege to get it right. The first thing we need to do is stop lending to companies that are destroying the planet. If it sounds really easy, that’s because it is.
The world is tired of excuses. The concept of risk has evolved. There is no good reason to directly or indirectly fund companies that harm our planet. Frankly, there is a significant lack of leadership and vision among companies that continue to invest in these practices. The clue is in the name. The leader takes the lead. On the other hand, companies that cannot change their business models are simply passive followers. If you can’t lead your company into a sustainable economic future, you’re not a leader. And everyone knows it. It makes no difference whether we build as many wind turbines as we want or keep funding their destruction.
Natural positive investments are all around us
The next step is more optimistic and personally very exciting. We must put money, strategy and power into companies and projects that regenerate nature. There are many profitable and comprehensive solutions that are in urgent need of funding.
One of our funds recently invested in a company that grows seaweed. Seaweed is not only an excellent sustainable fertilizer and feed, it improves marine biodiversity and water quality, and also has valuable carbon capture capacity. It’s innovative companies like this that really inspire me.
These prove that economically and environmentally beneficial investments already exist. These companies are looking to power up and all we have to do is support them. And honestly, if your team isn’t providing you with these opportunities, you need to do better. There is a universe.
future funding
This year’s Biodiversity COP16 is all about putting your money where your mouth is. Gone are the days of signing pledges and expressing goodwill. We need to stop funding destruction and start investing in solutions.
We are keen to collaborate with other companies and institutions looking to create profitable nature-based investments. There has never been a better time, and there have never been better people than those of us who are already in power. Together, we can take back our planet for generations to come.
