Biodiversity

RS Metrics’s approach to introducing granular asset-level biodiversity metrics to ESGSignals® platform

RS Metrics’s approach to introducing
granular asset-level biodiversity metrics
to ESGSignals® platform

RS Metrics collaborates with the Integrated Biodiversity Assessment Tool (IBAT) to launch asset-level biodiversity metrics to enhance RS Metrics’ leading ESGSignals® platform.

What is IBAT?

IBAT, described by its users as “a must for any project on biodiversity conservation”, provides authoritative geographic information about global biodiversity. It is underpinned by three of the world’s most authoritative global biodiversity datasets and, when integrated into ESGSignals®, will enable users to make biodiversity-informed capital allocation decisions using the most granular biodiversity metrics currently available.

GMMT

IBAT has been developed and is maintained by the IBAT Alliance, a partnership of leading conservation organizations, including BirdLife International (BirdLife), Conservation International (CI), the International Union for Conservation of Nature (IUCN), and UN Environment Programme World Conservation Monitoring Centre (UNEP-WCMC).

The IBAT collaboration allows users to estimate biodiversity metrics across:

  1. 265,000 Protected Areas (PAs)

  2. 142,000 IUCN Red List species

  3. 16,000 Key Biodiversity Areas (KBAs)

What answers do ESGSignals® Biodiversity metrics provide?

Stakeholders can use ESGSignals® Biodiversity data to answer questions that have been difficult to address in the past such as;

(i) How exposed is a portfolio company’s oil pipeline capacity to physical risk, and in the event of a spill or natural disaster, what will be the impact on Red List species, impact on KBAs, impact on PA's?

(ii) What are the outlier assets in a portfolio in terms of exposure to key biodiversity areas?

(iii) Estimate whether there are any World Heritage Sites near a company’s assets and how the company can better improve its processes to protect those areas.

Why is biodiversity important now?

The collaboration between RS Metrics and IBAT comes at a time when the recently launched TNFD (Taskforce on Nature-related Financial Disclosures) framework is expected to be adopted by major governments, corporations, and asset managers, which will further bolster the need for objective biodiversity datasets (Source). 
The TaskForce is planned to deliver a disclosure framework supporting a shift in financial flows away from nature-negative outcomes.

The collaboration between RS Metrics and IBAT comes at a time when the recently
launched TNFD (Taskforce on Nature-related Financial Disclosures) framework
is expected to be adopted by major governments, corporations, and asset managers,
which will further bolster the need for objective biodiversity datasets (Source).
The TaskForce is planned to deliver a disclosure framework supporting a shift
in financial flows away from nature-negative outcomes.

In order to limit warming, we need to reduce global greenhouse gas emissions significantly. AssetTracker® provides a tool for companies that want to learn more about their assets’ impact and how they can better manage their emissions.

“The World Economic Forum’s Global Risks Report 2020 listed biodiversity loss and ecosystem collapse as one of the top five threats humanity could face in the next ten years. In 2021, BlackRock named natural capital as one of the year’s investment priorities2. In tandem, pioneering companies published credible biodiversity strategies with robust biodiversity goals aligned to the Science-Based Targets Network. And major financial institutions, corporates and governments endorsed the launch of the Taskforce on Nature-related Financial Disclosures (TNFD).”

“In our conversations with Wall Street analysts, we have noticed an increasing level of sophistication on climate, environmental, and physical risks,” says Maneesh Sagar, CEO of RS Metrics.

“There is growing awareness of how all the different elements of corporate environmental performance tie together. What this means is that the same beleaguered executives, who are just getting off their heels in responding to emissions, are increasingly having to answer a litany of questions on biodiversity, water stress, physical risk, etc. This pressure will of course only intensify due to what we at RS Metrics call “involuntary transparency”, namely the ability to use geospatial to peer directly into corporate environmental performance. As the general public finds out how poorly current environmental measurements are taken (very rough estimates for emissions, not at all for measures like biodiversity), public scrutiny will only intensify.”

Maneesh Sagar
Chairman and CEO of RS Metrics

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