According to the UN Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services, plant and animal species are disappearing at an ever-increasing rate. This is alarming - for nature, the climate and the economy alike.

At the UN Biodiversity Conference in Montreal in 2022, an international agreement to protect and restore the world's biodiversity was concluded for the first time. Among other things, it was decided that the loss of biodiversity must be reversed by 2030, and that 30 percent of the world's nature must be protected by the same year.

P+ supports the Montreal Agreement. And on that basis, P+ launched the first comprehensive plan for our work on biodiversity in 2023.

Enhanced active ownership

P+ was one of the first investors to join the two new international investor collaborations, Spring, led by the supported network PRI, and and Nature Action 100

The aim of Nature Action 100 is to exercise active ownership with the world's 100 companies with the greatest dependency on or impact on nature and biodiversity, to get them to address adverse impacts and contribute to reversing biodiversity loss. Spring aims to exercise active ownership with a particular focus on issues related to deforestation and land degradation. 

At the same time, we also exercise active ownership via EOS and are in direct dialogue with both fund managers and selected Danish companies in, among others, the food and pharmaceutical industries about their work on biodiversity. 

Mapping of nature-related risks

P+ has had a screening carried out of our equity portfolio to provide insight into the nature-related risks that may impact investments. The screening has been completed using the so-called ENCORE tool which is developed by the Natural Capital Finance Alliance (NCFA) in cooperation with the United Nations Environment Programme (UNEP) and is intended to help financial institutions understand and manage these risks. Data collection within biodiversity is still in its early stages and under constant development, as measuring nature impacts and dependencies is a complex task. However, the ENCORE analysis is a way to understand how environmental changes may impact our investments and to assess how our investments may impact natural resources and specific geographical areas. Based on the analysis, P+ has mapped the impacts and dependencies our equity portfolio has on nature. The most significant impacts from the portfolio occur through water consumption, greenhouse gas emissions and pollution of water and soil. At the same time, the equity portfolio's most significant dependencies on natural resources are linked to water resources such as surface water and groundwater.

For P+'s portfolio, it is particularly investments in the pharmaceuticals, industrial machinery, microchip technology and transport sectors that have impacts and dependencies on nature. 

Based on the analysis, P+ has drawn up a list of companies in the portfolio that are particularly important to assess and manage when it comes to nature-related risks. P+ will use this list to strengthen efforts related to biodiversity, among other things by selecting companies with which to enter into closer engagement. This will take place as an extension of the active ownership already exercised through our partner EOS and via our fund managers.