Fitch Sees More Bonds as Biodiversity Goes Mainstream
- Nature theme faces challenges in finding quantifiable metrics
- Biodiversity-tied bond sales at a record $165 billion in 2023
Logged wood on a road near the Ghimes-Faget village, Romania.
Photographer: Daniel Mihailescu/AFP/Getty ImagesThis article is for subscribers only.
Bonds tied to biodiversity goals are on track for a record-setting year and this niche area of ESG investing is only going to get bigger, according to Fitch Group Inc.
Biodiversity doesn’t yet attract the same degree of investor attention as climate change. The struggle to bring variety to living species within a region has lacked clear metrics as well as an infrastructure to draw in investments. But the topic is poised to be the “next frontier” in ESG as new policies emerge and corporate and investor interest grows, according to William Attwell, an analyst at Sustainable Fitch.