ESG Focus Areas
31
Biodiversity
As the largest Nordic asset manager, we acknowledge our crucial role in preventing biodiversity loss and directing capital towards nature-positive solutions.
During 2025, the engagement has proceeded with the focus on impacts and dependencies assessments, governance and target setting. We are actively involved in 8 different company engagement streams. Investors Initiative on Hazardous Chemicals (IIHC) The IIHC's primary objective is to mitigate the adverse impacts of hazardous chemicals and their associated financial risks. This initiative is particularly significant as chemical pollution ranks as the third greatest cause of biodiversity loss, surpass- ing even climate change in its impact. Ecologists warn that fail- ing to address the negative effects of chemical pollution could severely undermine efforts to protect biodiversity and reverse current losses. We have been actively participating in five IIHC engagements with our investee companies, contributing to the initiative's goals and promoting more sustainable practices in the chemicals industry. We are members of the Steering Com- mittee of the IIHC and during 2025 we were actively involved in four engagement streams, including as lead in two of these. Finance for Biodiversity Pledge In 2021, we strengthened our focus on biodiversity by joining the Finance for Biodiversity Pledge, committing to protect and restore biodiversity through our investments. We actively contrib- ute to several working groups, including Engagement with Com- panies, Impact Assessment, and Target Setting, supporting guid- ance on company engagement, biodiversity measurement, and integration into financial decision-making. In 2024, we conducted our first biodiversity impact and dependency assessment, map- ping holdings to the ENCORE dataset. We expanded this with sector-focused analysis and company-specific biodiversity foot- print metrics using the Corporate Biodiversity Footprint (CBF) from Iceberg Data Lab. We also developed initial targets aligned with Finance for Biodiversity Foundation guidance, published in 2025, focusing on governance, education, internal policy devel- opment, and ongoing impact and dependency assessments.
Since signing the UN Principles for Responsible Investment in 2007, NAM has been actively engaging with portfolio companies on biodiversity and nature-related risks and opportunities. Biodiversity loss prevention is one of our four core focus areas, influencing investment decisions and potentially leading to engagement with high-risk companies. In 2025, 19% of our total engagements focused on biodiversity-related topics. At NAM, we employ Encore to assess impact and dependencies across our portfolio, guiding our engagement selection process. This approach addresses biodiversity risks and opportunities, informs ESG research, and guides our portfolio managers. We also participate in investor initiatives to enhance biodiversity risk education and management, engaging with issuers and policymakers to support these efforts. Moreover, during 2024 we have onboarded Iceberg Data Lab as an additional biodiversity data provider to ensure quality and coverage in fulfilling our commitment to biodiversity and nature. We are continuously reviewing new data sets and data providers to enhance quality and biodiversity and nature-related assessments.
Our engagement campaigns Nature Action 100
NA 100 is an investor initiative representing over 200 investors with more than USD 26.6 trillion in assets under management. The initiative focuses on key sectors crucial for reversing nature and biodiversity loss, targeting 100 companies identified as critical for biodiversity protection and restoration. NA 100 calls on companies to take six key actions: Ambition, Assessment, Targets, Implementation, Governance, and Engagement. To support investors in understanding and managing material nature-related financial risks and opportunities, NA 100 has developed a benchmark measuring progress on these six actions and related indicators.
Some of our Biodiversity engagement Initiatives:
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