As the sixteenth Convention on Biological Diversity (COP16) convenes in Colombia this month, the focus shifts from merely signing pledges and expressing good intentions to implementing actionable solutions. The time for words is over; we need to put our money where our mouth is. The climate crisis cannot be reversed without restoring nature, and achieving this restoration requires urgent financial commitments.
With 73% of wildlife lost over the past 50 years, we are racing against time to make essential investments. Those who continue to funnel money into companies that deforest, pollute, or destroy wildlife display a shocking lack of leadership.
The Urgent Need to Halt Unsustainable Agriculture
The collapse of biodiversity poses profound risks to every industry and service. According to UN data, one-eighth of all known species and plants are nearing extinction. Our current consumption patterns are exhausting our planet, as we utilize resources equivalent to 1.75 Earths annually. Central to this crisis is agriculture—specifically, the intensive deforestation, pesticide use, and soil degradation that accompany large-scale agricultural practices. Alarmingly, 90% of tropical deforestation and 70% of lost terrestrial biodiversity stem from agricultural expansion alone.
The relentless pursuit of “cheap” food is ironically depleting our soil, leading to diminishing crop yields, rising prices, and threatening future harvests. Globally, we lose around USD 577 billion annually due to declining pollinator populations, which are often harmed by pesticides. Recent surges in cocoa prices illustrate this reality; farmers in rural Africa face mounting challenges from extreme weather, diminished pollinators, and rampant diseases.
The Financial Sector’s Role in Nature Destruction
The financial sector has driven this destructive cycle. While we may not be the ones cutting down trees, we have funded the corporations that do. True leadership in this space requires an urgent pivot. The first step is unequivocal: stop financing companies that harm our planet. If that seems straightforward, it’s because it is.
There is no justification for financing firms that destroy nature, whether directly or indirectly. The concept of risk has evolved, and any firm clinging to outdated business models exhibits a failure in leadership and vision. Companies that cannot transition to sustainable practices must be seen for what they are: passive followers in a time that demands leadership. It’s futile to promote renewable energy initiatives if destructive practices continue unabated.
Embracing Nature-Positive Investments
On a more optimistic note, a plethora of nature-positive investment opportunities already exist. We must redirect our financial resources toward projects and companies that work to restore and revive nature. For instance, one of our funds recently invested in a seaweed cultivation enterprise. This initiative not only provides sustainable fertilizer and animal feed but also enhances marine biodiversity, improves water quality, and offers valuable carbon capture capabilities.
Such innovative companies exemplify how we can achieve economic viability alongside environmental restoration. Supporting these ventures is not just beneficial; it’s imperative. If your team is not presenting these opportunities, they need to reevaluate their approach.
Time for Action at COP16
As COP16 unfolds, it is clear that the time for mere intentions has passed. We need to transition from financing destruction to investing in sustainable solutions. We are eager to collaborate with other firms and institutions aiming to create profitable nature-based investments. The present moment is ripe for action, and those of us in positions of power have a unique opportunity to effect change. Together, we can restore the planet for future generations.
Hadewych Kuiper has been Managing Director of Triodos Investment Management since 2022. Previously, she served as Commercial Director, overseeing the development of Triodos’ impact investment offerings. Having joined Triodos Bank in 2008, she has played a vital role in promoting sustainable finance. Kuiper is an MBA graduate of Erasmus University Rotterdam.
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