Why protect our biodiversity?
Biodiversity helps maintain the balance of ecosystems by allowing different species to coexist and interact with each other in complex ways. A resilient natural capital ensures the delivery of services that are vital for our lives and is better able to adapt to changing environmental conditions. A healthy economy depends on a healthy planet.
What is biodiversity impact investing?
Besides significant economic consequences, biodiversity loss can also create physical, transition, systemic and regulatory risks for companies and investors. Allocating capital to companies that prioritize sustainability and biodiversity conservation may offer opportunities for investors to manage risks and generate positive returns. The ISS STOXX Biodiversity indices provide a robust toolkit to build such impact portfolios, tailored to specific needs.
How can biodiversity impact be measured?
Assessing a company’s biodiversity impact involves evaluating the effect that its operations and activities have on the local and global ecosystems. Biodiversity footprint, habitat loss, species impact and stakeholder engagement are some methods in which an organization’s impact on biodiversity can be quantified and qualified through scientific and carefully-researched data systems. In general, measuring a company’s biodiversity impact is complex and requires a robust methodology to provide a thorough assessment.
How are the ISS STOXX Biodiversity indices built?
The ISS STOXX Biodiversity indices include three screens, plus an additional layer that reduces the portfolio’s carbon footprint. The index suite consists of two categories: the ISS STOXX Biodiversity indices, which track companies with high biodiversity- and climate-related Sustainable Development Goal (SDG) scores, and the ISS STOXX Biodiversity Leaders, which include companies with high revenues from specific SDG-related activities.
Key benefits
Capital alignment with long-term goals, risk management and investment opportunities
Comprehensive, multidimensional framework with two levels of targeted impact and option to customize and optimize strategies
Stock selection based on biodiversity exclusionary screens, Sustainable Development Goals (SDGs) and carbon emissions targets
ISS STOXX Biodiversity indices framework
1 For each of the sustainability objectives an Objective Score is calculated. These company-specific scores assess the overall impact of a company’s product portfolio on the achievement of a given objective. They are calculated by multiplying the net sales shares generated with relevant products/services with the numeric scores assigned to them. All Objective Scores range on a scale from -10.0 (i.e., 100% of net sales are generated with products/services classified as having a significant obstructing impact) to 10.0 (i.e., 100% of net sales are generated with products/services classified as having a significant contributing impact).
2 This is based on the share of revenues a company derives from products and services identified as contributing to the achievement of a given objective and ranges from 0% to 100%.
ISS STOXX® Biodiversity indices
No Results Found
Try a different search term or browse all our indices
Related news & research
ISS STOXX® Biodiversity Indices: How to Incorporate Biodiversity Considerations in Index Construction
Biodiversity is vital for our planet and society. With the emergence of the Kunming-Montreal Global Biodiversity Framework, investors are gaining a better understanding of biodiversity-linked risks and opportunities in their portfolios. This paper begins by exploring the current metrics available for assessing the biodiversity footprints of companies. It then describes the ISS STOXX framework for building biodiversity indices, based on three fundamental steps: “Avoid,” “Minimize,” and “Enable.”
TNFD recommendations set path for nature-related disclosure standards, supporting biodiversity action
The international body’s framework is a step forward in the adoption of nature-focused metrics. It can help companies address biodiversity issues and guide investors in the construction of portfolios. We compare the TNFD’s recommended process to that of the ISS STOXX® Biodiversity indices.
Antonio Celeste on how investors should urgently mitigate against biodiversity loss
Antonio Celeste, Director for Sustainability Product Management at STOXX spoke to Climate Action about how investors should urgently mitigate against biodiversity loss.
Unveiling the biodiversity paradigm: an emerging risk frontier for portfolios
At a recent IPE webinar, experts from STOXX, ISS ESG and DWS discussed how biodiversity impact is becoming a new risk consideration for portfolio managers amid tightening regulation and client demand. Participants also examined the new ISS STOXX Biodiversity indices as a framework to tackle nature-related risks and opportunities.
New Indexes Promise “Comprehensive Framework” on Biodiversity
The ISS STOXX Biodiversity Index Suite, launched this week, aims to take a more holistic approach to biodiversity than existing market offerings, Antonio Celeste, Director for Sustainability Product Management at index, analytics and risk solutions provider Qontigo, told ESG Investor.
New ISS STOXX indices use comprehensive framework to help investors address biodiversity challenges
The fight to preserve our nature’s systems is intensifying, presenting both additional risks and opportunities for investors. Qontigo’s ISS STOXX Biodiversity indices offer a multi-step framework to address biodiversity challenges while employing state-of-the-art datasets.
ISS ESG and Qontigo Launch ISS STOXX Biodiversity Index Suite
ISS ESG, the sustainable investment arm of Institutional Shareholder Services Inc. (ISS), and Qontigo, a leading global provider of innovative index, analytics and risk solutions, today announced the release of the ISS STOXX Biodiversity Index Suite to mark the U.N.’s International Day for Biological Diversity.
Q&A: Building customized, sustainable portfolios based on the STOXX World indices
The modular STOXX World indices allow investors to flexibly build portfolios covering a broad and liquid universe of stocks, slicing and dicing the world’s equity markets along regions, countries, market capitalization and sectors.