Biodiversity
The critical state of biodiversity threatens our planet
Responsible investment
A research group from the Stockholm Resilience Centre has identified nine life-supporting processes, also known as planetary boundaries, that are crucial for Earth's balance. In 2023, they assessed that the safe zone – the boundary beyond which these processes can be burdened to maintain their function – had been exceeded for six out of the nine boundaries. One of them was "biodiversity".
We now find ourselves in a critical "red zone". This means that we are at risk of drastic and irreversible changes in the conditions that make life on Earth possible.
What is biodiversity?
In our work, we base ourselves on the UN's official definition of biodiversity:
”The variety of living organisms in all environments, both on land and in water, as well as the ecological interactions that these organisms engage in. Biodiversity includes not only the variation within and between species but also the diversity of ecosystems/habitats”.
A healthy and thriving biodiversity in a habitat such as a bog is characterised by a high level of species richness. Here, everything from butterflies and frogs to water salamanders, dragonflies and fish thrive in the humid environment. At the same time, there is genetic variation within species. For example, different butterfly species or grass species exist side by side.
But biodiversity isn't just about species; it's also about habitats. Forests, meadows, beaches, etc. each have their own unique interactions with the species that live in these areas.
Action plan for biodiversity with 5 focus areas
In the coming years, our work on biodiversity in our investments will be based on an action plan built around five central focus areas. These have been carefully selected to ensure that Velliv meets its commitments under the FfB Pledge and our desire to contribute to reversing the negative trend in biodiversity.
Development of biodiversity competencies
To make responsible investment decisions that take into account biodiversity, it is essential that both investment employees, management, and other relevant top-level executives develop an understanding of the subject area. The goal is for all relevant parties to understand the importance of biodiversity and the risks and opportunities it presents for Velliv's investments.
Analysis of our investments
To ensure that we stay up-to-date, we will continuously and systematically analyse the dependencies and impacts of our investments on biodiversity. This will enable us to adjust our approach in line with new insights and improved data sources. As a starting point, the analysis will be updated annually.
Engaging in dialogue with companies on biodiversity
We will proactively direct our own dialogues on biodiversity towards pharmaceutical companies, as we have identified that they both depend on and impact biodiversity to a significant extent. We will prioritise dialogues with European companies, as we believe that we have a greater chance of contact and real influence with those companies that are geographically closer to us.
In collaboration with other investors, we are also in dialogue with other companies about biodiversity through Nature Action 100.
Investing in biodiversity
We aim to invest in projects that contribute to the protection and restoration of biodiversity. This focus is rooted in Velliv's Policy for Responsible Investment and Active Ownership, where we have set a goal of focusing on impact investing.
Real-estate investments
Specifically within our property investments, we aim to understand the impact of Velliv's real-estate investments on biodiversity in connection with both the operation of existing properties and the environmental footprint associated with renovation and new construction. We want to establish a baseline for green spaces on existing properties, raise awareness about opportunities and effects related to biodiversity, and formulate a vision for our work on biodiversity that aligns with Velliv's overall goals.