Unlocking Nature’s Capital: How Biodiversity Finance is Reshaping Investment Strategy

This report by Pictet Asset Management, authored by Philipp Buß and Stephen Freedman, explores how biodiversity-related risks and opportunities are transforming global financial markets.

Key Insights:

• Surge in Nature Bonds: Biodiversity-focused ESG debt hit a record high in 2024, with nearly 25% of issuance targeting nature-positive goals—double the 2022 figure.

• Corporate Innovation: Companies like CMPC and Klabin are issuing Use of Proceeds and sustainability-linked bonds tied to concrete biodiversity targets.

• Institutional Movement: Major investors (e.g. ABP, Norway’s SWF) are embedding nature risk into capital allocation and driving new conservation-linked investment products.

Explore the full report to see how nature is becoming the next frontier of sustainable finance—and where the smartest capital is flowing.