72: Federated Hermes' Caroline Cantor – Biodiversity

[i3] Institutional Investment Podcast

Why should institutional investors care about biodiversity in their investment strategy, when they are still embarking on the net zero journey? Because it is most likely to be the next area of focus for regulators and society more broadly, Caroline Cantor of Federated Hermes says. BTW, did you know the average person eats about a credit card worth of plastic a week through micro plastic pollution? The problem of micro plastics: there are statistics that say the average person now eats a credit card of plastic on a weekly basis Overview of Podcast with Caroline Cantor, Investment Director, Federated Hermes: 01:00 Starting out as an engineering student 03:00 Why is biodiversity important from an investment perspective? 04:00 As more environmental policies will come out, we think they will focus on protecting Biodiversity 05:00 If biodiversity deteriorates any further, how will that affect a company’s supply chain? We don’t think they factor that in. 08:00 How much does the theme of biodiversity overlap with potentially other ESG policies within an organisation? 10:00 The Six Themes of Biodiversity 10:30 Is biodiversity as an investment theme not too niche for an institutional investor? 11:00 More than 50 per cent of GDP activity is dependent on biodiversity 14:30 The problem of micro plastics: there are statistics that say the average person now eats a credit card of plastic on a weekly basis 15:30 Federated Hermes works together with the Natural History Museum in London on this? Where do they come into play? 17:30 The Biodiversity Intactness Index 22:00 The concept of natural capital 26:00 It is important to also engage with some of the biggest polluters out there. 27:00 How does this theme interact with the UN Sustainable Development Goals? 29:00 Plant-based diets, food producers and valuations 32:00 There are 17 countries that account for 70 per cent of biodiversity. Does this lead to concentration in the portfolio? 34:00 We’ve seen particular interest from investors who are based in countries that have been affected most by a reduction in biodiversity 35:00 COP 26 and the outcomes for biodiversity 37:00 Portfolio companies that address deforestation: Brambles