Root And Branch: A Case Study In Assessing Portfolio Biodiversity Risk

2026-01-22 06:10:00 ET

By Sara Rosner | David Hutchins, FIA | Henry Smith, CFA

Biodiversity risk is more nuanced and complex than many investors think. For instance, there’s a widespread belief that deforestation poses the biggest nature-related risk for most portfolios. But when we applied our proprietary biodiversity risk-assessment framework for a client, we found that water risk—not deforestation—was the portfolio’s biggest exposure. Our analysis of the MSCI AWCI Index using the same framework shows water risk is elevated for many companies, highlighting just how important it is to assess biodiversity risk accurately....

Read the full article on Seeking Alpha

For further details see: