The role of industry in tackling the biodiversity crisis – The Royal Gazette

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Updated: November 17, 2021 at 7:59 AM

A report focused on the biodiversity crisis is the latest alarm cry from professional organizations for the inhabitants of the planet.

Awakening Nature – The Biodiversity Imperative in Financial Services, a report launched by EY, in collaboration with Microsoft and Earth Knowledge, makes it clear that businesses must play a leading role in finding solutions.

Biodiversity loss includes the global extinction of species, as well as the shrinkage or loss of species in specific habitats.

The world’s best experts have long said that it is people who are killing the planet’s great biodiversity.

The International Union for the Conservation of Nature has reported that in the past decade alone, some 467 species have been declared extinct. And many more are almost there.

But EY stresses that insurers, investment funds and banks are well positioned to help restore the health of nature through their disproportionate influence on human economic activity.

Released a few weeks before COP26 and the Green Horizon Summit, which is sponsored by EY, the biodiversity document highlights the nature-related challenges facing the financial sector today.

The report highlights the depletion of natural resources at a rate that has exceeded the rate of regeneration of the Earth, to the point that we would need around 1.7 Earths for the expanding world population to maintain their standard of living. current.

We have lost half of our forests, 85% of our wetlands and half of our coral reefs, while about a million species are threatened with extinction.

Financial institutions can help change this trend by ensuring that their investments, capital allocation, loans and insurance coverage support the “positive nature” activities of businesses around the world.

Craig Redcliffe, EY Bermuda Partner and EY Region Insurance Leader for Bermuda, Bahamas, British Virgin Islands and Cayman Islands, said: “By the nature of their business, insurers and reinsurers Global Bermuda have a deep understanding of the relationship. between changes in the natural world and the risks they entail.

Bill Bailey, Managing Partner of EY Bermuda and Regional Tax Manager, added: “By incorporating biodiversity considerations into their underwriting and investment decision making, reinsurers can exert a significant and positive influence. helping to protect the essential ecosystems that underpin all aspects of our economy and Earth’s sustainability.

The report sets out four clear steps financial companies can take to help vital ecosystems regain their full health: include biodiversity and “natural” outcomes in the strategy for sustainable finance; engage with businesses on priority biodiversity issues, such as deforestation; advocate at the political level for appropriate regulation; and develop methodologies to measure and manage progress.

Eleanor Fisher, Strategy and Transaction Partner and Regional Sustainability Leader, Said: A Financial Opportunity.

“The biodiversity financing gap is estimated at $ 800 billion and growing every year, as more than two-thirds of savers seek investments that support sustainability. Companies that find solutions to match supply and demand will be leaders in the growing sustainable finance market. “

Eleanor Fisher: strategic and transactional partner of EY and regional leader in sustainable development (Photo provided)

Craig Redcliffe: Partner of EY Bermuda and Regional Insurance Leader for EY Region of Bermuda, Bahamas, British Virgin Islands and Cayman Islands (Photo provided)

Bill Bailey, Managing Partner and Regional Tax Manager at EY Bermuda (Photo provided)

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