December 13, 2024 - Biodiversity is the intricate web that supports life on Earth, playing a vital role in providing essential services such as clean air, water, food and climate stability. Recognising its critical importance, VP Capital has placed biodiversity at the heart of its 2024–2028 strategy. As a responsible investment firm, we acknowledge the urgent need to address the biodiversity crisis, which is driven by factors like pollution, invasive species, overexploitation, land-use changes and climate change. These challenges require coordinated efforts from all sectors, and we are committed to playing our part.
Committing to nature: joining the Finance for Biodiversity Foundation and setting targets
In 2023, we took a significant step forward in our sustainability journey by joining the Finance for Biodiversity Foundation and signing its pledge. This commitment aligns our financial activities with the biodiversity goals outlined in the Kunming-Montreal Global Biodiversity Framework, a global blueprint for halting biodiversity loss by 2030. As part of this pledge, we are proud to share our initial biodiversity targets, marking the beginning of our integrated approach to nature preservation and the protection of ecosystems.
Our five biodiversity targets
Governance: Before the end of 2025, We'll disclose a clear governance structure for nature that integrates board oversight and management responsibilities with the existing governance structure for broader ESG issues.
Strategy: Before the end of 2025, we’ll evaluate our portfolio's first maturity level in biodiversity integration. This qualitative assessment will provide insights into how our investments integrate biodiversity impacts, dependencies and governance into their operations. To achieve this, we’ll use our internally developed Biodiversity Climate and Social Equality (BCS) maturity ladder as part of our annual sustainability engagement process.
Strategy: Before the end of 2025, we’ll assess the quantitative positive and negative biodiversity impacts of our investments. Positive impact will be assessed based on a set of predefined quantitative impact metrics that are linked to our defined solutions, and negative impact metrics are based on the Principal Adverse Impact indicators (PAI indicators).
Assessment: Before the end of 2025, we’ll conduct an impact and dependencies assessment of our investment portfolio. This will be publicly disclosed.
Capacity building: Before the end of 2025, all investment committee members and supervisory board members will have completed training on the relationship between nature loss and investment as well as on the potential positive impact of investing in nature.
Looking ahead
We’re excited about the journey ahead as we work to assess and refine our understanding of the impacts and dependencies of our investments on biodiversity. Our goals are just the beginning of our commitment to protecting and restoring nature. By aligning our operations with the Kunming-Montreal Global Biodiversity Framework, we aim to drive long-term value creation while helping to address one of the most pressing challenges of our time.
As the world’s biodiversity continues to decline, with reports highlighting the alarming rates of species extinction and ecosystem degradation, it is more important than ever that businesses take bold action. The latest assessments from organisations like the United Nations show that we are at a critical juncture, where immediate, systemic changes are needed to reverse the biodiversity crisis.
VP Capital’s commitment to biodiversity is not just about reducing negative impacts but also about actively seeking opportunities to make a positive difference. We recognise that biodiversity conservation is not a one-time effort but an ongoing journey, and we are fully committed to integrating biodiversity into our operations and investments.
By taking these steps, we not only protect the natural world but also create a more resilient and sustainable investment model that can thrive in harmony with nature. We look forward to sharing our progress and lessons learned as we continue to integrate biodiversity into our investment approach, driving both positive environmental impact and financial returns.
We invite you to explore our strategy and discuss how we can collaborate to invest together in impactful initiatives that promote sustainability and biodiversity.
