Stockholm (NordSIP) – At the end of June, the PRI launched Spring, a stewardship initiative for nature, convening institutional investors to use their influence to halt and reverse global biodiversity loss by 2030. According to the PRI, 204 investors collectively representing US$15 trillion in assets under management (AUM) publicly support the initiative. 66 of these investors will be actively involved in the engagements with 40 focus companies according to the PRI.
“Whichever way you look at it, nature risk is climate risk. What we’re seeing today from investors is a recognition of the importance of nature when managing material investment risks, including deforestation and biodiversity loss, when aligned with their individual fiduciary duty. Spring provides an opportunity to our signatories to address the financially material risks stemming from global nature loss. In doing so, we’re also supporting the investment community’s contribution to and alignment with the objectives and targets of the Global Biodiversity Framework agreed by more than 190 governments,” said David Atkin, PRI’s CEO.
The Investors
Within the three categories of participants in the initiative, there were nine Nordic endorsers (AP3, AP7, Copenhagen Infrastructure Partners P/S, Elo Mutual Pension Insurance Company, Evli Plc, LD Pension, P+, SEB Investment Management, the Folksam Group), four Nordic collaborating investors (Aktia Bank, Church of Sweden, Länsförsäkringar AB, LocalTapiola Asset Management Ltd) and four Nordic lead investors (AP2, Öhman Fonder, Pension Danmark and Storebrand).
“Halting and reversing forest loss and land degradation is fundamental for a healthy climate, a sustainable future and long-term investment results. We recognize the need for sound public policy to achieve this goal. Spring’s focus on responsible political engagement fits well with Storebrand’s approach to nature and our involvement in collaborative initiatives. We look forward to working with peers from around the world on this important topic,” Emine Isciel, Head of Climate and Environment, Storebrand Asset Management, said.
“AP2 supports Spring, an investor initiative from PRI that wants to accelerate corporate action to promote nature. With the support of over 200 investors who manage USD 15 trillion, the initiative wants to work to reduce businesses’ operational risks, improve the management of companies’ supply chains and ensure responsible and transparent political influence,” AP2 commented on its website.
Engaging with Companies
The initiative has announced it will engage with 60 focus companies on the biodiversity front, including 40 focus companies that were announced in February 2024 and for which engagement groups have been formed. This first list included four Nordic companies: Finland’s Neste (Oil & Gas), Norsk Hydro ASA (mining and refining) from Norway and Sweden’s AAK AB (agriculture, food and consumer goods) and Volvo (automotive).
A second list of 20 focus companies was released in June 2024 and is now open to new participant applications until 20 September 2024. Additional companies may be included in the initiative over time. “These companies have been identified as influential actors in the dynamics of forest loss and land degradation due to either their direct or indirect exposure or their significant role in engaging policy makers,” the PRI argues.
According to the PRI, investors will engage with companies to improve the nature impacts and risks in their 1) business operation and risk management; 2) supply chain management; and 3) political engagement. The initiative is suited to investors looking to manage financially material nature-related risks and investors looking for sustainability outcomes, in line with their fiduciary duty.
