Climate change has dominated the sustainability agenda for years. Investors have become familiar with topics such as carbon emissions, renewable energy and the transition to a low-carbon economy. But another sustainability issue is increasingly attracting attention: biodiversity.
At first glance, biodiversity may seem far removed from investing. After all, what do bees, forests, wetlands and healthy soil have to do with financial markets? More than many investors realize.
"}},{"componentType":"sectionTitle","title":"Why biodiversity matters"},{"componentType":"paragraph","richBody":{"value":"Biodiversity refers to the variety of life on Earth, from plants and animals to entire ecosystems. Healthy ecosystems provide essential services that support economic activity. They help pollinate crops, purify water, maintain soil quality and regulate the climate.
Many industries depend on these natural systems. Agriculture relies on fertile soil and pollinators. Food producers depend on stable ecosystems and water availability. Pharmaceutical companies often use natural compounds in drug development. Even sectors such as construction and manufacturing can be affected by nature loss through resource shortages or supply chain disruptions. As biodiversity declines, these risks become increasingly relevant for businesses and investors.
"}},{"componentType":"sectionTitle","title":"A growing concern for investors"},{"componentType":"paragraph","richBody":{"value":"In recent years, climate change has become easier to measure. Investors can track carbon emissions and set emissions reduction targets. Biodiversity is more complex. Nature cannot be captured in a single metric.
Nevertheless, investors are paying more attention to the issue. International initiatives are encouraging investors to engage with companies on nature-related risks and opportunities. Recent updates from the Principles for Responsible Investment (PRI) highlight growing collaboration between investors to address biodiversity loss and improve the management of nature-related risks.
As biodiversity rises on the sustainability agenda, investors are increasingly asking a new question: how can nature-related risks and opportunities be reflected in investment decisions?
"}},{"componentType":"sectionTitle","title":"How we approach biodiversity at the Global Investment Centre"},{"componentType":"paragraph","richBody":{"value":"For investors, biodiversity is one of the most important emerging sustainability themes. At the same time, it remains one of the most challenging to incorporate directly into investment portfolios.
Unlike climate change, where carbon emissions can be measured relatively consistently, biodiversity is harder to quantify. Nature-related impacts vary across regions, ecosystems and industries, and there is still no single metric that captures biodiversity risk in the way carbon emissions capture climate risk. While data availability is improving, many of the biodiversity-related data points investors would like to use are not yet consistently available through the major sustainability data providers used across the investment industry. This makes it difficult to systematically integrate biodiversity considerations into portfolio construction today.
That does not mean investors have to remain on the sidelines. Engagement is increasingly recognised as an effective way to encourage companies to better understand, measure and manage their impact on nature. Through engagement, investors can promote greater transparency and support improvements in areas such as deforestation, land use, water management and ecosystem protection.
As part of this approach, the ING Global Investment Centre has joined Spring, a collaborative investor engagement initiative coordinated by the Principles for Responsible Investment (PRI), the UN-supported network that promotes the integration of environmental, social and governance (ESG) factors into investment decision-making. Spring brings together investors from around the world to engage with companies on nature-related risks, with a particular focus on biodiversity loss and deforestation. Earlier this year, the initiative published its first progress report, outlining key engagement activities and lessons learned.
By collaborating with other investors through initiatives such as Spring, we aim to encourage companies to improve their understanding of nature-related risks, enhance disclosure and strengthen their approach to protecting ecosystems. While biodiversity data and measurement frameworks continue to evolve, engagement enables investors to contribute to meaningful change today.
For us, this reflects a pragmatic approach. Where data availability still limits direct portfolio integration, active ownership and engagement can help bridge the gap.
"}},{"componentType":"sectionTitle","title":"From climate risk to nature risk"},{"componentType":"paragraph","richBody":{"value":"Climate change and biodiversity are closely connected. Rising temperatures, more frequent droughts and extreme weather events can put pressure on ecosystems. At the same time, the loss of forests, wetlands and other natural habitats can weaken nature’s ability to absorb carbon dioxide. This means investors increasingly view climate and nature as two sides of the same coin. Addressing climate risks without considering biodiversity may result in an incomplete picture of long-term sustainability challenges. For example, a company may reduce emissions while still contributing to deforestation or habitat loss. Investors are becoming more aware that both dimensions matter when assessing long-term business resilience.
"}},{"componentType":"sectionTitle","title":"What does this mean for investors?"},{"componentType":"paragraph","richBody":{"value":"Biodiversity is unlikely to replace climate change as a major investment theme. Instead, it is becoming an additional lens through which investors assess risks and opportunities.
Several themes are emerging:
At the same time, investors are paying closer attention to sectors that may face higher nature-related risks, such as agriculture, mining, chemicals and certain consumer goods industries.
Biodiversity remains a developing area within sustainable investing. Measurement standards are still evolving and reporting practices continue to improve. This means investors should expect the topic to become more visible in company reporting, investment analysis and stewardship activities in the years ahead.
Just as climate change has moved from an environmental concern to a financial consideration, biodiversity is gradually following the same path. For investors, the key takeaway is simple: healthy ecosystems support healthy economies. Understanding how companies interact with nature can help build a more complete picture of long-term risks and opportunities.
Climate change is no longer the only sustainability topic on investors’ radar. Biodiversity is increasingly recognised as a factor that can influence economic resilience, corporate performance and long-term investment outcomes.
While investors still face challenges in measuring biodiversity and systematically incorporating it into portfolios, this should not be mistaken for inaction. Through engagement and collaborative initiatives such as PRI Spring, investors can encourage companies to better understand and manage their impact on nature. As biodiversity data, reporting standards and disclosure frameworks continue to mature, nature-related considerations are likely to become an increasingly important part of sustainable investing.
"}},{"componentType":"linkList","iconTitle":{"title":"Read more"},"textLinks":[{"text":"Our Perspective Overview","url":"/en/personal/investing/market-news-and-views/our-perspective-overview"},{"text":"Market Outlook","url":"/en/personal/investing/market-news-and-views/market-outlook"},{"text":"More News and Views","url":"/en/personal/investing/market-news-and-views"}]},{"componentType":"sectionTitle","title":"Good to know"},{"componentType":"paragraph","richBody":{"value":"Investing involves risks and costs. The value of your investment may fluctuate. Past performance is no guarantee of future results. Read more about the risks of investing.
This publication has been prepared on behalf of ING Bank N.V. and is intended for information purposes only. ING Bank N.V. obtains its information from sources deemed reliable and has taken the utmost care to ensure that the information on which it based its views in this publication was not incorrect or misleading at the time of publication. ING Bank N.V. does not guarantee that the information it uses is accurate or complete. The information contained in this publication may be changed without any form of announcement. Copyright and data file protection rights apply to this publication. Data from this publication may be reproduced provided that the source is stated. ING Bank N.V. has its registered office in Amsterdam, commercial register no. 33031431, and is regulated by the Dutch central bank De Nederlandsche Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM). ING Bank N.V. is part of ING Groep N.V.
"}}]},"hasMacro":false,"id":"c94f968a-b2e4-4357-8fc2-7c9aad764cd7","localeString":"en-GB","mainHeaderZone":{"authorInfo":{"authorName":"Hanna Lukacs","image":{"altTextEN":"Hanna Lukacs of the IIO","altTextNL":"Hanna Lukacs van het Investment Office","extension":"jpg","original":"https://assets.ing.com/asset/23e80964-1cbe-4246-9be2-8cca854a9d9c/Hanna-Lukacs.jpg","transformBaseUrl":"https://assets.ing.com/transform/23e80964-1cbe-4246-9be2-8cca854a9d9c/Hanna-Lukacs","type":"image","width":520},"intro":"ING Investment Office","jobTitle":"Sustainability Specialist"},"backLink":{"textLink":{"text":"Market news and views","url":"/en/personal/investing/market-news-and-views"}},"componentType":"editorialHeader","coreHeader":{"body":"When investors think about sustainability, climate change usually comes to mind first. Yet another challenge is rapidly moving up the agenda: biodiversity loss. As businesses depend on healthy ecosystems for everything from food production to water availability, investors are paying closer attention to how nature can influence long-term economic and investment outcomes.+","headerImage":{"extension":"jpg","original":"https://assets.ing.com/asset/61369c07-e567-4e02-89e6-3853b9bd6be4/PORTRAIT-OF-SMILING-BOY-WITH-TREE-TRUNK.JPG","transformBaseUrl":"https://assets.ing.com/transform/61369c07-e567-4e02-89e6-3853b9bd6be4/PORTRAIT-OF-SMILING-BOY-WITH-TREE-TRUNK","type":"image","width":6240},"subtitle":"Our Perspective","title":"Why biodiversity is moving up investors’ agendas"},"date":"2026-08-23","readingTime":3},"publishDate":"2026-08-27T08:22:25.122+02:00"}}