Floods, droughts, wildfires, rising sea levels – these aren’t distant risks. They affect companies’ assets, operations, and supply chains today. Biodiversity loss compounds the problem, particularly for sectors that depend on natural resources.

We treat physical climate risk and biodiversity loss as conventional risk management issues. But most of the industry doesn’t yet. Integration across financial decision-making is still at an early stage.

That’s where our fund manager engagement comes in. We push managers to carry out comprehensive risk assessments and help portfolio companies build resilience to both climate impacts and ecosystem degradation. We track progress through milestone-based reporting.

Our work with Foresight shows what sustained engagement can achieve. Over several years, EQ Investors’ (EQ) engagement led Foresight to launch a strategic biodiversity programme across its UK infrastructure companies. They set clear policies, committed to best-practice frameworks for assessing nature, including TNFD, and published their results. Clear leaders emerged. Improvements were made.

This is the multiplier effect of engaging fund managers directly: one conversation with a manager can drive real change across dozens of underlying companies.