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NatureAlpha collaborates with MSCI on biodiversity data

Source: NatureAlpha

NatureAlpha is collaborating with MSCI, to drive the provision of solutions for investors seeking to track the biodiversity and nature risks, footprints and dependencies of their investments.

Today’s announcement follows the agreement of the Global Biodiversity Framework at the COP15 Conference in Montreal in December.

COP15 provided an important tailwind to conversations regarding the role the investment community can play in protecting nature and biodiversity and how related material risks can be measured.

Through the collaboration, MSCI will distribute NatureAlpha’s biodiversity data and analytical tools to the global investment community.

The data will cover the full list of constituents of the MSCI ACWI Index, augmenting the existing MSCI offering and helping clients to:

* Better identify their exposure to higher-impact companies, industries and operations from a nature and biodiversity risk perspective, resulting in more responsible portfolio management and investment decision-making;

* Participate in more meaningful engagement with portfolio companies and stakeholders, helping to better align companies’ activity to global nature and biodiversity frameworks and targets;

* Provide enhanced comprehensive reporting in response to growing regulatory pressures, including the Sustainable Finance Disclosure Regulation (SFDR) reporting and in alignment with the evolution of the Taskforce on Nature-related Financial Disclosures (TNFD).

NatureAlpha and MSCI have also agreed to work together on research projects and explore the potential development of additional methodologies and tools.

This includes a Biodiversity Footprint metric based on advanced lifecycle analysis methodologies to help investors measure the absolute or relative impact of their investments.

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