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- Investor Tool: Robeco’s Biodiversity Traffic Light enables investors to evaluate companies’ biodiversity risks and performance.
- Forward-Looking Analysis: The tool assesses both current nature-related impact and future commitments using TNFD-aligned metrics.
- Portfolio Action: Investors can use the tool for screening, adjusting portfolio weights, and guiding engagement strategies.
Robeco has launched the Biodiversity Traffic Light, a new investor tool designed to help capital allocators identify which companies are leading—or lagging—in biodiversity and nature-related performance.
“Robeco’s Biodiversity Traffic Light provides a framework for assessing how well companies are progressing on this transition. By identifying leaders and laggards, the tool can help investors allocate capital toward companies that are making meaningful progress in mitigating their impacts on nature.”
The tool arrives as investors increasingly recognize nature loss as a systemic risk, yet struggle with how to measure, monitor, and act on those risks across sectors beyond forestry and farming.
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The new model is powered by recent developments:
- Sector-specific metrics from the Taskforce for Nature-Related Financial Disclosures (TNFD)
- Improved datasets from third-party providers, often developed in tandem with nature-focused organizations
How It Works:
The Biodiversity Traffic Light assigns companies to four categories—aligned, aligning, partially aligning, and misaligned—based on sector-specific assessments.
- Current Performance: Evaluated on KPIs like water use, hazardous waste, non-GHG air pollution, and revenue from high-risk areas
- Future Plans: Analyzed for governance structures, board oversight, disclosures, and time-bound biodiversity targets
The traffic light system maps company data to TNFD’s industry-specific impact metrics, offering a forward-looking, comparative view of nature performance.
Robeco says the tool supports:
- Positive and negative screening
- Portfolio reweighting toward nature-positive firms
- Enhanced company engagement
For C-suites and institutional investors, this offers a practical, data-driven pathway to integrate biodiversity into risk management and capital allocation strategies.
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