Insights from Our Recent Theme Session on Biodiversity

We held two highly engaging theme sessions on July 11, 2024, focusing on biodiversity which is a growing theme within the sustainable investment agenda. The SDI AOP community meetings, with a global representation of subscribers, provide a platform to discuss the use of the SDI data, exchange ideas and share best practices, address challenges in implementation and foster collaboration among investors.

Stefan Gevaert, SDI Analyst provided an overview of the current efforts and the state of play regarding biodiversity. Stephanie Kelly of Greenwheel – the sustainability ecosystem that powers Redwheel’s Enhanced Integration, Transition and Sustainable funds - shared practical insights and experiences in implementing biodiversity into investment strategies. Hans op ‘t Veld moderated the sessions.

Stefan Gevaert outlined the connection between biodiversity and the Sustainable Development Goals (SDGs), particularly SDGs 14 and 15, which focus on life below water and life on land, respectively. The interconnected nature of biodiversity with other SDGs underscores its foundational importance in sustainable development.

SDI AOP has focused on opportunities and avoided impacts in biodiversity, mapping product categories to themes aligned with biodiversity benefits. Stefan highlighted the thematic tagging approach, which categorizes revenues based on their exposure to biodiversity-related themes.


Challenges and opportunities are faced in systemic and operational risks, such as waste production and community farming support which are central to the biodiversity agenda. Stefan points out that public sector initiatives are vital in creating markets for solutions to these problems.

The SDI taxonomy currently identifies a wide range of areas which represent opportunities to enhance biodiversity. These include technologies and activities relating to Water, Agriculture, Packaging, Infrastructure, Land and Forestry.  The SDI AOP will continue using research by the asset owners to identify new solutions, including getting input from private markets teams where new technologies often appear before being taken up by larger players. Emphasis will be on addressing revenue streams directly benefiting biodiversity.

Stephanie Kelly provided an in-depth look at how Redwheel has approached biodiversity in the implementation of a focused fund. She emphasizes the development of a clear theory of change and the importance of using high-quality data. Key takeaways from her presentation include:

1. Developing a Theory of Change:
   • Establishing a clear theory of change was crucial for Redwheel’s biodiversity strategy.
   • Linking biodiversity themes to SDGs provided a structured approach for tracking and measuring impact.
2. Establishing Core Investable Themes:
   • Redwheel identified four core themes: sustainable materials, terrestrial ecosystems, aquatic ecosystems, and circularity and waste management.
   • Each theme was mapped to specific SDGs to ensure clarity and focus.
3. Data and Methodology:
   • High-quality data, particularly from SDI AOP, played a critical role in Redwheel’s strategy
   • Emphasis on revenue alignment with biodiversity benefits rather than merely scoring companies.
4. Challenges in Implementation:
   • Quantifying biodiversity impacts is challenging due to the nascent nature of methodologies and data.
   • Focus on mitigating harm rather than overpromising positive impacts.
5. Human Rights and Biodiversity
   • Integration of human rights considerations into biodiversity investments, particularly in sustainable forestry.
   • Collaborative efforts with indigenous communities to enhance ecosystem management.

Credible positive biodiversity investment opportunities are currently limited
Both sessions featured interactive components where participants could share their experiences and challenges. Polls conducted during the sessions revealed that a significant number of participants have incorporated biodiversity into their sustainable investment policies, though it is often still an emerging focus. Key biodiversity-related outcomes targeted by participants include risk mitigation, deforestation prevention, and plastic pollution reduction. Major impediments to incorporating biodiversity into investment policies include a lack of data, unclear definitions, and the challenge of measuring impact.

Participants shared valuable insights and posed questions, particularly around the challenges of benchmarking and the ability to scale biodiversity-focused investments. It is clear that implementation still is in a phase of discovery.  This includes the proper identification of aligned investments and the provision of the associated evidence to differentiate, as well as providing relevant data and benchmarks.

The meetings confirmed that biodiversity is a hot topic among sustainable investors, but that there are limited credible positive impact opportunities which can generate revenues at present. The discussions underscored the importance of high-quality data, clear impact measurement methodologies, and ongoing collaboration within the investment community to address the complex challenges of biodiversity. We look forward to continuing these discussions in our community and will obviously keep you posted on the evolution of this topic.