Episode 72: Federated Hermes’ Caroline Cantor

Biodiversity, Microplastics and Investments

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?

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
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

This podcast was sponsored by the Federated Hermes.


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