{"id":451575,"date":"2026-02-03T17:20:10","date_gmt":"2026-02-03T17:20:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/451575\/"},"modified":"2026-02-03T17:20:10","modified_gmt":"2026-02-03T17:20:10","slug":"how-biodiversity-protection-impacts-investment-assets","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/451575\/","title":{"rendered":"How biodiversity protection impacts investment assets"},"content":{"rendered":"<p>Read: <a href=\"https:\/\/www.benefitscanada.com\/canadian-investment-review\/strategies\/regulatory-headwinds-preventing-uniform-adoption-of-sustainability-standards-in-canada-expert\/\" rel=\"nofollow noopener\" target=\"_blank\">Regulatory headwinds preventing uniform adoption of sustainability standards in Canada: expert<\/a>\n<\/p>\n<p>\u201cWhich is telling us that if you\u2019re going to invest in those areas, you have to anticipate all these risks associated with biodiversity in the form of regulatory risk and reputational risk.\u201d\n<\/p>\n<p>Biodiversity protection \u2014 designated habitats that are conserved to protect the natural environment \u2014 is becoming a key financial risk consideration for corporations and investors, she says.\n<\/p>\n<p>\u201cI think our results are important in a way that for investors who care about the environment, who care about the loss in biodiversity, they should look into the investments that are located near the protected areas.\u201d\n<\/p>\n<p>The report argues proximity to protected areas shapes establishment-level environmental, operational and financial outcomes. Indeed, firms with locations around those protected areas find significantly reduced toxic emissions.\n<\/p>\n<p>Read: <a href=\"https:\/\/www.benefitscanada.com\/canadian-investment-review\/strategies\/85-of-global-asset-owners-recognize-climate-risk-as-a-major-concern-survey\/\" rel=\"nofollow noopener\" target=\"_blank\">85% of global asset owners recognize climate risk as a major concern: survey<\/a>\n<\/p>\n<p>The researchers evaluated data from 1990 to 2021 and found these protected areas significantly reduce toxic emissions, driven not by cleaner technologies but by production cutbacks and workforce contraction.<\/p>\n<p>She was most surprised that her colleagues were able to review existing data sets for protected areas like national parks.\n<\/p>\n<p>\u201cWe didn\u2019t think that it [would] have any impact at all . . . . We were very surprised to find that plants that are located near these protected areas [would] be impacted.\u201d\n<\/p>\n<p>Ng says biodiversity can directly affect cash flows and firm value since companies were found to respond to the \u201cheightened biodiversity-related oversight\u201d by scaling back activity, which the researchers noted can lead to lower profitability and weaker valuations.\n<\/p>\n<p>The study was co-authored with Amir Akbari from McMaster University\u2019s DeGroote School of Business, the University of Auckland\u2019s Marty Pham and Jing Yu at the University of Sydney.\n<\/p>\n<p>Read: <a href=\"https:\/\/www.benefitscanada.com\/canadian-investment-review\/strategies\/esg-considerations-leading-to-higher-private-equity-returns-bci\/\" rel=\"nofollow noopener\" target=\"_blank\">ESG considerations leading to higher private equity value creation: BCI<\/a>\n\t\t\t\t\t\t\t\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"Read: Regulatory headwinds preventing uniform adoption of sustainability standards in Canada: expert \u201cWhich is telling us that if&hellip;\n","protected":false},"author":2,"featured_media":451576,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[11541,49,48,20662,93043,31939,44,1646,13979,13978],"class_list":["post-451575","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-biodiversity","tag-ca","tag-canada","tag-esg","tag-institutional-investing","tag-investment-strategies","tag-news","tag-research-and-markets","tag-schulich-school-of-business","tag-york-university"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/451575","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=451575"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/451575\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/451576"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=451575"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=451575"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=451575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}