Why nature matters to us and our clients

The term ‘nature’ encompasses vital aspects of all our lives, from the food we eat to the air we breathe. Half of global economic output is moderately or highly dependent on nature and its services, according to research from PwC.¹

But our natural world is in crisis. Ecosystems are being degraded at a faster rate than ever before, with the loss of vital ecosystem services (on which society and our economies depend) estimated to reduce global GDP by $2.7 trillion per year by 2030.²

Nature is our most important asset, yet we do not account for the value it provides. Nature is the foundation on which our society and global economy exist. As the Dasgupta Review put it, “we are embedded in nature, not external to it”.³ Therefore, nature change and biodiversity loss pose a significant risk that can no longer go overlooked.

What LGIM is doing

LGIM supports the Kunming-Montreal Global Biodiversity Agreement’s mission of taking urgent action to halt and reserve nature loss by 2030, and the vision of living in harmony with nature by 2050.

The long-term strength of our economies, companies, financial systems and societies depends on the health of nature. It is critical that action is taken to meet global agreements to halt biodiversity loss and reverse the degradation of nature.

As a global investor, we believe we can use our influence to raise market standards and drive positive outcomes for our clients and society as a whole. That’s why LGIM has prioritised nature as one of its strategic themes for engagement with companies and policymakers.

We have published our own nature framework, which explains why nature is a systematic risk and how we’re approaching the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services’ (IPBES) direct drivers of nature change.

Read our nature framework here.

This is just the beginning. We have structured our nature framework across four key sub-themes of engagement: circular economy, deforestation, water and natural capital management. We published an updated Deforestation policy in 2023 and are due to release our policies on water, the circular economy and natural capital management.

In addition, we’ve just renewed our global partnership with Lewis Pugh, UNEP Patron of the Oceans. In his epic swims, Lewis has seen the detrimental effects of the climate crisis and nature loss first hand.

Find out more about why nature matters to us and what investors can potentially do to harness nature-related investment opportunities in 2024 here.

Meet the team

Our engagements around the nature theme draw on the various specialisms within the Investment Stewardship team. Click on team members' names to read their thought leadership:

• Alexander Burr - Lead on Nature (also Water)
• Toby MacKean - Natural Capital Management
• Anna Hirai - Circular Economy 
• Stephen Beer - Deforestation 

1. Source: https://www.pwc.com/gx/en/news-room/press-releases/2023/pwcboosts-global-nature-and-biodiversity-capabilities.html 

2. Source: The World Bank, 2021

3. Source: https://www.gov.uk/government/publications/final-report-the-economics-of-biodiversity-the-dasgupta-review