Assessing the impacts and dependencies on nature: A case study using a diversified UK asset owner portfolio

About this LEAP Use Case

This use case presents an illustrative example from Scottish Widows, who developed an understanding about the nature-related impacts and dependencies of its investment portfolio. The use case shares insights for asset owners who are looking to assess their exposure to nature-related risks and opportunities.

Key outcomes

• Scottish Widows has approximately 10% and 12% of its total holdings in the top 20 most nature-impacting and dependent sub-industries, respectively.
• ZSL collaborated with Scottish Widows in conducting this project. The process proved to be an invaluable knowledge sharing and capacity building exercise for both organisations. It highlighted the benefits of close collaboration between biodiversity focused organisations and financial institutions in tackling nature-related issues.
• This project relied heavily on the use of the ENCORE tool. Despite its limitations, ENCORE provided a double materiality approach to the portfolio and, as an open-source dataset, it is an invaluable resource for investors looking to better understand nature-related issues of different sectors and sub-industries.

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