The Australian Council of Superannuation Investors (ACSI) welcomes the release of the Environment Ministers’ Meeting Communique outlining targets on protection of Australia’s biodiversity and promoting a circular economy by 2030.
Biodiversity loss is predicted to wipe up to US$20 billion from the Australian economy annually by 2050, according to research by WWF. The rapid decline of nature and biodiversity presents a material financial risk to investors and companies, as well as an opportunity for new investment.
ACSI welcomes the targets set by State and Federal Environment Ministers to conserve 30 per cent of Australia’s landmass and marine areas by 2030, increased support for nature positive investments and the commitment to integrate First Nations people in the conservation process.
“Loss of biodiversity not only erodes economic, social and cultural value, but presents a material financial risk for investors,” ACSI CEO Louise Davidson said.
“Biodiversity loss is accelerating, and this creates material risks and opportunities for investors based on companies’ dependencies and impacts on nature.
“The targets agreed to by Australia’s Environment Ministers will help limit biodiversity loss and support investors to manage this investment risk. Investors are supportive of measures that promote nature positive investments and make it easier for investors to measure and track nature-related risks.”
ACSI also welcomes new targets to promote a circular economy and reduce waste and pollution.
“The circular economy is important for investors because it presents a critical aspect of decarbonizing the economy through emissions reductions tied to production and use of materials and products.
“It is important that Australia starts embedding circular models across the economy. These targets will support that objective and are welcomed by investors.”
Investors supports further measures to minimise biodiversity loss, including implementing the Taskforce on Nature-Related Disclosures, release of the Government response to the Samuel Review and Australia taking a leading role in advancing biodiversity protection internationally at COP15.
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