In Credit, Climate and Nature – Now Together, the authors argue that the next stage of sustainable fixed-income investing requires integrating biodiversity alongside climate considerations, reflecting the growing link between the energy transition, natural capital and long-term portfolio resilience.
- the paper argues that the energy transition has become a matter of national security as well as decarbonisation, while growing demand for critical minerals, land and water makes biodiversity a financially material investment risk.
- It introduces a framework that combines climate and biodiversity assessments to identify issuers leading both transitions, enabling more forward-looking credit selection.
- According to the authors, integrating biodiversity improves issuer selection without materially reducing portfolio diversification, helping investors balance sustainability objectives with risk-adjusted returns.
Read the full white paper for a detailed framework on integrating climate and nature into fixed-income portfolio construction
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