Long AI, Short Nature: Close the Short

At the same time billions are being invested in AI, billions are divested away from the intelligence found in nature, on which our economies and societies rely. This blog argues that the risk-reward of this ‘buy AI, sell nature’ approach is a poor trade to make: AI is convenient, but costly and risky, whilst nature is essential, freely available and harmless. Now is the time to close the short: read on to discover twenty practical ways to invest in nature.

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‘More than the entire global defence budget’: new report shows that trying to fix the permanent damage deep sea mining would cause is so costly no one could afford it

Stopping deep sea mining is one solution to the climate crisis that can still be achieved. More than 700 scientists have warned that if it were to go ahead, it could pose irreversible risks to nature and climate on a multi-generational timescale. Crucially, this environmental damage would not replace but add to the harm caused by terrestrial mining.

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Countries reliant on nature dependent exports are impacting credit ratings, new analysis shows

Investors and policymakers are increasingly aware of the importance of biodiversity and natural resources to the economy, with some estimates suggesting that nature loss puts almost USD $55 trillion at risk. As global institutions take measures to protect nature, it is vital for financial institutions to understand the critical link between natural resources in the economy and long-term bond performance.

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Fashion retailers’ green credentials ‘meaningless’ without better supply chain engagement, says new report

Planet Tracker calls on retailers to work with their supply chain partners to improve traceability and environmental impacts. Fabric manufacturers and producers are responsible for 76% of textile’s impact on climate, but only 7% of its market capitalisation.

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Colgate-Palmolive on a +3ºC pathway with ‘no clear strategy’ for Scope 3 emissions

Colgate-Palmolive is on a path to missing its approved Science-based Targets emissions by a factor of 7 when optional indirect use emissions are excluded. In the next decade the consumer goods giant could be hit by a USD 2.1 billion increase in annual operating costs due to potential Carbon Pricing Mechanisms and water scarcity.

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Investors need to ensure that risks associated with plastic are adequately priced

Analysis of equity risk premia of 150 top corporates in the plastic value chain finds risk perception in industry is at its lowest level since 2011, despite a potential‘landslide of regulation’ including Global Plastic Pollution Treaty. Investors failing to forecast changes in risk profile means corporate liabilities and litigation costs in plastics could rise above USD 20 billion by end of the decade for the US alone, possibly USD 100 billion annually and beyond by 2030.

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Read more about the article What financial markets should take away from the latest round of negotiations towards a Global Plastic Pollution Treaty
Coronavirus covid-19 waste polluting the ocean: face masks and surgical gloves floating in the water and damaging the ecosystem, environmental conservation concept

What financial markets should take away from the latest round of negotiations towards a Global Plastic Pollution Treaty

Today, on World Environment Day, we reflect on the latest round of negotiations towards a Global Plastic Pollution Treaty and what financial markets should take away from the discussions.

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