A milestone for the ASN Biodiversity Fund: 2022 was its first full financial year, which means the first conclusions can now be drawn. What is the positive impact that investors’ money has on biodiversity? Quantifying this was quite a challenge. Fund manager Karin van Dijk explains.
Is measuring the positive impact on biodiversity out of the ordinary?
‘No investor has ever measured and calculated the positive impact on nature of specific projects and businesses in this way before. There was no generally accepted measurement method for this yet. On top of that, it’s a difficult task: counting how many tonnes of CO2 emissions have been avoided is much simpler than establishing how populations of birds and other animals are developing.
Karin van Dijk, Fundmanager ASN Biodiversiteitsfonds
So it’s a matter of counting trees and birds?
It’s not that simple. For example, a huge amount of effort goes into measurements using satellite images, which allow us to derive the quantity of biomass on land. DNA analysis of soil samples allows you to establish how healthy the soil is, and there are certainly ways to quantify animal numbers in an area using sound recordings. But these are expensive technologies that are not yet fully mature. That’s why we’re building on the existing methodology for calculating the negative impact on biodiversity.
We’re only able to use part of this methodology for this fund, because our focus is on protecting and especially restoring nature. In tandem with our partner PRé Sustainability, we therefore expanded and refined the measurement methodology for biodiversity.
Extensive scientific research has already been undertaken on life cycle assessment and natural ecosystems. In combination with the data we receive from the parties in which we invest, this provided enough of a basis to arrive at a figure
Every euro in this fund restores or protects 1 square meter of nature?
‘That’s right, and I can immediately say that this is a very cautious, conservative estimate. Our fund is in the start-up phase, we invest in projects that have not yet realized their full impact. That is not possible: nature needs time. Although I am very happy with the speed at which the rhino population in Africa is growing (+7.3%) and that we are contributing to this as an investor.
‘Moreover, we have to make assumptions if concrete data on our investments is lacking. It is also crucial that you know what the starting situation is. We are not satisfied with saying: we manage so many hectares sustainably, no: we really want to know what difference our investment makes compared to the baseline, that situation in which we do nothing. What is the nature that we manage to preserve, and where does real recovery take place, such as with the reforestation of the Amazon? We don’t want to count ourselves rich. We have only counted the impact that we can fully substantiate. It’s not black and white, it’s not math. But it indicates that things are going in the right direction. And the first half of 2023 shows a further improvement in the impact.
Measuring impact is pioneering work. Did you learn much from this?
‘Yes, because this was the first time that we tested theory and assumptions against practice. For example, we gained a much better understanding of how important a baseline measurement is: what happens to biodiversity on a site and its surroundings, and what is the added value of the investment? Thanks to the measurement, we also know even better what information we definitely need to obtain from our investments. We’ll target this even more stringently in the future. We’ve also shown that certification provides much additional information. For organic farming, certification schemes stipulate that no pesticides must be used. That’s something that we can include in our calculations
'‘Although I am very happy with the speed at which the rhino population in Africa is growing (+7.3%) and that we are contributing to this as an investor."
We also pass on what we’ve learned to other financial parties with which we’ve joined forces to work on standards for investments in biodiversity, such as the Partnership for Biodiversity Accounting Financials (PBAF) and the Biodiversity Footprint for Financial Institutions (BFFI).’
These figures look good. Do they confirm your expectations?
‘Of course, we knew that all our investments genuinely have a tremendously positive impact on nature. I was in the Amazon myself last summer to visit and assess a number of projects and businesses and to learn to understand the local context better. It might take a bumpy ride in a car for 10 hours a day, but you can see with your own eyes how much clear-felling has taken place there in the rainforest for soy cultivation and livestock farming. There are endless plains. Nature has been really violated there. If these are replanted with forest, it will genuinely make a huge difference.’
Read more about the impact of the ASN Biodiversity Fund in the ASN Biodiversity Fund Impact Report Impact Report ASN Biodiversity Fund
Why is it so important to measure impact in this new way?
‘It signals to your investors and other parties that you’re on the right track. Recognising impact is crucial in that respect, especially because large investors quite often use the lack of impact data as an excuse for not moving forward. We’re now dispelling any doubt about the results: investing in a positive impact on biodiversity really works. Moreover, we’re happy to share how we get our data. In that sense, we work on an open-source basis. As far as we’re concerned, much more can be invested in biodiversity and many larger investors can help with this as well. ASN Impact Investors has found more than enough attractive projects and businesses throughout the world that are eager to scale up and are seeking funding for this. This is not yet progressing anywhere near fast enough for us. That’s why we’re publishing this report and these figures: to inspire as many others as possible, so that we help accelerate the protection and restoration of biodiversity worldwide.
‘‘These figures look good. Do they confirm your expectations? ‘Of course, we knew that all our investments genuinely have a tremendously positive impact on nature. I was in the Amazon myself last summer to visit and assess a number of projects and businesses and to learn to understand the local context better’
Read more about the impact of the ASN Impact Investors in the Impact Report ASN Impact Investors
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