Invest in Biodiversity February 25, 2022

Invest in Biodiversity

World Wildlife Day will be celebrated on 3 March 2022. This year’s theme is “Recovering key species for ecosystem restoration”.1

The aim of this year’s event is to draw attention to the conservation status of some of the most critically endangered species of wild fauna and flora, and to drive discussions towards imagining and implementing solutions to conserve them.

The aim of the event is also tied to the achievement of the UN’s Sustainable Development Goals (SDGs), specifically 14: Life Below Water and 15: Life on Land, but with close linkage to other SDGs like No Poverty; Zero Hunger; Ensure Sustainable Consumption and Production Patterns; Climate Action2.

So, in 2022, World Wildlife Day will drive the debate towards the imperative need to reverse the fate of the most critically endangered species, to support the restoration of their habitats and ecosystems and to promote their sustainable use by humanity.

According to the latest data from the International Union for Conservation of Nature Red List of Threatened Species, over 8,400 species of wild fauna and flora are critically endangered, while close to 30,000 more are understood to be endangered or vulnerable. Based on these estimates, over a million species are threatened with extinction.

Continued loss of species, habitats and ecosystems threatens all life on Earth as people everywhere rely on wildlife and biodiversity-based resources to meet all their needs, from food and fuel to medicines, housing, and clothing. Furthermore, millions of people also rely on nature as the source of their livelihoods and economic opportunities.

But, when it comes to investing and business, biodiversity protection has long been undervalued compared to the fight against climate change and pollution.3

According to Edition 5 of the Stewardship Matters magazine, business would simply not exist without biodiversity, and yet the dependence of business on it has been largely obscured or remained too complex for most businesses to comprehend.

Investors need to build upon climate risk capabilities and realise the impacts and dependencies of their supply chains on nature.

For example, our food systems depend upon pollinators, which in turn depend upon access to native vegetation. So, investing in an agribusiness that sets ESG targets and integrates nature-protecting systems over and above good business governance is clearly a better bet.

Businesses which understand biodiversity risks, responsibilities and opportunities can start to direct investments that build resilience and productivity while stewarding the natural environment. They unlock potential revenue streams from emerging ecosystem markets that offer solutions to carbon capture, biodiversity restoration and clean water.

However, there are some key challenges when considering biodiversity from an investment perspective, one of which is measurement.

Unlike climate risks, where the market has coalesced around carbon emissions as the metric, there is currently no obvious unifying equivalent for biodiversity. Furthermore, investors still lack consistent and transparent data from companies, which would enable them to truly incorporate biodiversity into their decisions. But things are looking up, as the Taskforce for Nature-related Financial Disclosures (TNFD) will be releasing a draft risk management and disclosure framework in early 2022 for organisations to test its use in reporting and acting on evolving nature-related risks. The TNFD intends to deliver a framework that helps financial institutions and companies attain better information that incorporates nature-related risks and opportunities into their strategic planning, risk management and asset allocation decisions.

The UN Convention on Biological Diversity (CBD) earlier developed the draft Post-2020 Global Biodiversity Framework that promises a Paris-style agreement for UN-parties. It builds on a strategic plan for biodiversity with 21 targets for 2030. Effective implementation means mobilising resources from public and private finance sectors and multi-sectoral cooperation. Goals of Singapore’s National Biodiversity Strategy and Action Plan mirror the objectives of the CBD. It is developed by the National Parks Board and supports the City in Nature vision, one of the key pillars of the SG Green Plan 2030.

To conclude, here are a few points to consider when looking at biodiversity and sustainable investing4:

  • Biodiversity is an important theme in sustainable finance because of its value. The OECD estimates that ecosystem services are worth USD125 trillion-140 trillion per annum to society, equivalent to ~1.5x global GDP.
  • The risks that investors are exposed to through biodiversity loss in their portfolio come from two main categories: physical and transition risks. Industries such as tourism, agriculture, forest and fisheries are more exposed to physical risk resulting from biodiversity loss. And transition risks impact industries such as logging, mining, intensive livestock farming, infrastructure, transport and plastics. These sectors are also exposed to reputational, regulatory or litigation risks.
  • Companies with biodiversity-friendly businesses provide innovative solutions, and offer compelling investment opportunities.
  • Some of the themes you can invest in are: ecosystem protection, future energy, resource efficiency and smart mobility.

With hopes to set goals for mid-century and 2030 at the upcoming continuation of COP15 in Kunming (15th Conference of the Parties to the CBD), and the pledge to end deforestation by 2030 at COP26, the significance of biodiversity has begun to grab more worldwide attention. Hopefully, investors in 2022 will take more action to ensure that their investments also have a beneficial impact on the planet.

ESG-related exposure

A good place to start ESG investing is to look for ESG-focused Funds or ETFs such as the ones below. We do note that positive change can really be made through investments ESG funds with nature-positive and NetZero objectives. To check them out, go to:

Ticker AUM Average Vol(3mths) Expense Ratio Dividend Yield 3 Year return
ESGU.US USD 25.49B 1.12M 0.15% 1.06% 124.3%
SUSA.US USD4.33B 287K 0.25% 1.09% 93.2%
ESGV.US USD6.35B 317K 0.09% 1.09% 88.9%

Investors can also get ESG exposure through investment in companies with high ESG scores as the ones below. Scores indicate ESG risk exposure of the company and may not reflect nature-positive actions of the companies. Companies that adopt TNFD and TCFD frameworks are the ones to watch.

Ticker ESG score9 Market Cap Industry 3 Year return
MSFT.US 76.30 2,300B Infrastructure software 190.6%
CAN.US 75.95 225B IT Services 134.9%
CRM.US 72.92 230B Application software 53.7%

ESG-related unit trusts are available on the POEMS website. To check them out go to:

Schroder ISF Global Sustainable Growth Fd F Acc SGD
BlackRock Sustainable Energy Fund A2 SGD H (LU1978683503)
Schroder ISF Glb Climate Change Equity Fd A Acc SGD
AB SICAV I – Sustainable Glb Thematic Portfolio Class A SGD
UOB United Sustainable Credit Income Fd CL A SGD Acc H
Fidelity Sustainable Asia Equity Fd A SGD
Stewart Investors Worldwide Leaders Sustainability Fund
Fidelity Sustainable Asia Equity Fd SR-ACC-SGD

This article was written in consultation with Phillip Capital Management ESG.



These commentaries are intended for general circulation. It does not have regard to the specific investment objectives, financial situation and particular needs of any person who may receive this document. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the units and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. Investors may wish to seek advice from a financial adviser before investing. In the event that investors choose not to seek advice from a financial adviser, they should consider whether the investment is suitable for them.

The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries.

Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned.

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you


This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  


Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066