Biodiversity Risks and Opportunities in Asia Pacific

Biodiversity Risks and Opportunities in Asia Pacific  MSCI

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Apr 8, 2024 - 14:30
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Biodiversity Risks and Opportunities in Asia Pacific

Biodiversity Risks and Opportunities in Asia Pacific

Asia Pacific (APAC) Biodiversity Crisis and Sustainable Development Goals (SDGs)

The Asia Pacific (APAC) region is currently facing a significant biodiversity crisis, with 63% of the region’s Gross Domestic Product (GDP) at risk due to nature loss1. In this report, we have assessed the constituents of the MSCI AC Asia Pacific Investable Market Index (IMI)2 using data from MSCI ESG Ratings. Our assessment focused on three sources of risk related to biodiversity: biodiversity and land use, toxic emissions and waste, and water stress.

Considering that companies operating in biodiversity-rich regions may face even higher biodiversity risks, we specifically examined companies with assets located in biodiversity-sensitive areas (BSA)3. Our analysis primarily looked at their direct operations.

This report also aims to identify opportunities for addressing biodiversity impacts. We utilized MSCI ESG Sustainable Impact Metrics to evaluate sectors4 and companies that have generated revenues from pollution prevention, sustainable agriculture, and sustainable water solutions.

Assessment of APAC Companies on Biodiversity-related Key Issues and Exposure to BSA

APAC companies assessed across biodiversity-related key issues and exposed to BSA

Out of all the constituents of the MSCI AC Asia Pacific IMI (n=4,307), 36% (1,540) were assessed on at least one biodiversity-related key issue. Data as of October 17, 2023. Source: MSCI ESG Research

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

  • SDG 15: Life on Land – This goal focuses on protecting, restoring, and promoting sustainable use of terrestrial ecosystems, including forests, wetlands, and biodiversity.
  • SDG 6: Clean Water and Sanitation – This goal aims to ensure availability and sustainable management of water and sanitation for all.
  • SDG 12: Responsible Consumption and Production – This goal promotes sustainable consumption and production patterns, including the sustainable management of natural resources.

2. What specific targets under those SDGs can be identified based on the article’s content?

  • Target 15.1: By 2020, ensure the conservation, restoration, and sustainable use of terrestrial and inland freshwater ecosystems and their services.
  • Target 6.4: By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity.
  • Target 12.4: By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water, and soil to minimize their adverse impacts on human health and the environment.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

  • Indicator for Target 15.1: Assessment of companies’ exposure to biodiversity and land use risks in biodiversity-sensitive areas (BSA).
  • Indicator for Target 6.4: Assessment of companies’ exposure to water stress risks.
  • Indicator for Target 12.4: Evaluation of sectors and companies generating revenues from pollution prevention, sustainable agriculture, and sustainable water solutions.

SDGs, Targets, and Indicators Table

SDGs Targets Indicators
SDG 15: Life on Land Target 15.1: By 2020, ensure the conservation, restoration, and sustainable use of terrestrial and inland freshwater ecosystems and their services. Assessment of companies’ exposure to biodiversity and land use risks in biodiversity-sensitive areas (BSA).
SDG 6: Clean Water and Sanitation Target 6.4: By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity. Assessment of companies’ exposure to water stress risks.
SDG 12: Responsible Consumption and Production Target 12.4: By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water, and soil to minimize their adverse impacts on human health and the environment. Evaluation of sectors and companies generating revenues from pollution prevention, sustainable agriculture, and sustainable water solutions.

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: msci.com

 

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