The Intergovernmental Panel on Biodiversity and Ecosystem Services (IPBES) identifies five direct drivers of biodiversity loss:
- land and sea use change,
- climate change,
- pollution,
- natural resource use and overexploitation, and
- invasive alien species.
Storebrand prioritises sub-industries with the most material nature-related impacts to ensure these companies mitigate activities that negatively affect biodiversity.
Our expectations of companies are based on the mitigation hierarchy set out in the International Finance Corporation’s (IFC) Performance Standard 6 and guided by the Science Based Targets Network (SBTN) and the Taskforce on Nature-related Financial Disclosures (TNFD).
Deforestation
Our ambition is to eliminate commodity-driven deforestation from our portfolios by 2025. However, companies are progressing too slowly in removing deforestation and ecosystem conversion from their supply chains. We therefore remain committed to continuing strong engagement on this issue beyond 2025.
As part of this commitment, we engage with companies involved in the production, trade, use, or financing of forest-risk commodities, as well as mining. Much of this work is carried out through the Finance Sector Deforestation Action (FSDA).
In addition, we will continue engaging with policymakers in selected countries through the Investor Policy Dialogue on Deforestation (IPDD).
Sustainable seafood
Seafood is one of the world’s most highly traded and valuable commodities, with global demand expected to double by 2050. Yet a significant amount of seafood-related assets and revenue may be at risk due to overfishing, habitat degradation, nutrient pollution and disease. Companies, particularly within aquaculture, will be engaged to reduce some of the sector’s environmental impacts including biodiversity loss.
We expect the sector to address issues such as pressure on wild fish stocks, deforestation and habitat loss, antimicrobial resistance (AMR), pollution due to use of chemicals and waste, and animal welfare.
Extractives in ecologically sensitive areas
We will prioritise engagement with companies that operate or source from ecologically sensitive areas such as the Arctic and the deep sea. We will expand to other ecologically sensitive areas as data improves. Companies that derive more than 5 percent of their revenues from Arctic drilling will be put on our observation list and closely monitored and engaged with based on our existing ownership.
Following the precautionary principle, Storebrand will not invest in companies directly involved in deep-sea mining until more scientific knowledge is available on its impacts. We will also engage with downstream companies connected to deep-sea extractive activities.