DPAM sets biodiversity targets as part of the Finance for Biodiversity pledge

Recognising the critical role of the financial sector in reversing biodiversity loss, DPAM became a signatory of the Finance for Biodiversity Pledge in December 2020.

As a signatory of the Finance for Biodiversity Pledge, DPAM commits to:

01

Collaborate with peers, policymakers, and other stakeholders to advocate for biodiversity-positive practices.

02

Engage with companies to reduce their negative and increase their positive impacts on biodiversity.

03

Measure biodiversity impacts and the dependencies of our investments on natural capital.

04

Set targets for biodiversity that are measurable, science-based, and in line with global frameworks such as the Kunming-Montreal Global Biodiversity Framework

05

Report annually on our progress to enhance transparency and accountability.

These commitments align with our ambitions, as a Taskforce on Nature-related Financial Disclosures (TNFD) 'early adopter', to fully integrate its principles and to make public disclosures on the 2025 financial year. Therefore, DPAM selected a data provider to facilitate the exercise of measuring impacts and assessing dependencies and to engage with companies. In addition, this year we have already performed an initial assessment to identify nature-related impacts, dependencies, risks and opportunities.

Selecting the right provider

Data on biodiversity impacts and dependencies is crucial for informed decision-making for investment strategies. However, selecting appropriate data sources presents challenges due to the multifaceted nature of biodiversity and the lack of a common metric. As opposed to climate change where carbon emissions have become the standard unit of measurement globally, assessing biodiversity with one single metric is more challenging. Different technical methodologies and models based on diverse assumptions, offered by various data providers further complicates the selection process. To address this, DPAM initiated market research, which included inviting a field expert assessment of the available methodologies, this provided us with recommendations tailored to the specific needs of asset managers. As part of our sustainable and responsible investment governance process, the market research and expert views were discussed internally to make a final decision on the selection.

Initiating the exposure assessment

From a strategic and risk management perspective, DPAM performed an initial assessment to identify exposure to sectors with significant nature-related risks derived from impacts and dependencies. This assessment forms the starting point for risk identification and the prioritisation of specific industries. The impact assessment is based on four drivers of biodiversity loss (climate change, pollution, resource depletion and land use) and the dependencies assessment is based on 24 ecosystem services. Insights will be disclosed in 2025 and as a next step, sector specific KPI’s will be set to monitor priority sectors.

DPAM’s participation in collaborative initiatives

To further strengthen our commitment and align with the first two commitments of the Pledge, DPAM was also one of the initial signatories of Nature Action 100. Nature Action 100 is a collaborative engagement initiative that aims to drive greater corporate ambition to reverse nature and biodiversity loss. In addition, DPAM is also part of several other biodiversity-linked initiatives such as FAIRR, the UN PRI Nature Reference group, the Investor Initiative on Hazardous Chemicals and the UN PRI’s Spring, all to foster collaboration and to exchange best practice with peers.

Alignment with DPAM's sustainable and responsible investment strategy

These efforts build on our ongoing commitment to sustainable and responsible investment, demonstrated by our alignment with the Taskforce on Climate-related Financial Disclosures (TCFD) and the Net Zero Asset Managers Initiative. DPAM recognises the urgency to act on biodiversity loss and will continue to refine methodologies, engage with stakeholders, and align with best practice to ensure that our investments contribute to a nature-positive future.

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