Using the Biodiversity Impact Analytic powered by the Global Biodiversity Score database on a STOXX Europe 600 portfolio
Biodiversity-related financial risks are an emerging topic for financial institutions. As a way to understand and quantify the relationship between ecosystems and economic actors, Carbon4 Finance and CDC Biodiversité co-developed BIA-GBS to measure companies’, sovereign entities’ and portfolios’ contributions to the degradation of ecosystems, as well as their dependencies on the ecosystem services provided by the environment.
The indicators provided by BIA-GBS allow financial institutions to understand an entity’s exposure to biodiversity-related transition and physical risks. BIA-GBS is built upon the Global Biodiversity Score (GBS), a methodology created by CDC Biodiversité. Indeed, the first version of the GBS was released in May 2020. Since the first assessment, conducted by Schneider Electric in 2020, more than 40 companies have assessed their impact on biodiversity. In this context, financial institutions need accurate biodiversity data on listed assets portfolios. As a pioneer and leader in climate data and methodologies, Carbon4 Finance partnered with CDC Biodiversité to create the Biodiversity Impact Analytics powered by the Global Biodiversity Score (BIA-GBS) database.
This paper provides an in-depth analysis of the results provided by BIA-GBS for 1 billion euro in turnover, divided between the STOXX Europe 600’s components, based on their weighting in the index.
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