With the joint ambition of raising awareness and promoting protection of biodiversity, Federated Hermes has launched a biodiversity equity fund with insights from the Natural History Museum.

The Fund meets critical demand for solutions delivering global goals on biodiversity and aims to achieve long-term capital appreciation by investing in a concentrated portfolio of companies that are helping to preserve and restore biodiversity.

The Natural History Museum has developed a scientifically rigorous metric, the Biodiversity Intactness Index (BII) which estimates the loss of biodiversity across an area using a combination of land use, ecosystem, species and population data to give a simple figure for ‘intactness’, that is, what percentage of the area’s natural ecological community still persists there.

Last year, the Museum opened up the BII data through an online tool, the Biodiversity Trends Explorer, to enable users to compare the state of local ecosystem biodiversity among countries as well as how different possible economic futures will affect nature in developed and developing countries over the coming decades. The fund will be making use of such data to help support and inform investment decisions for the strategy.

Federated Hermes and the Natural History Museum have been working together to explore how the Museum’s biodiversity experts and data scientists can help establish the bridge between observed biodiversity impacts, and the products and services that investment companies enable. Federated Hermes will also donate 5 per cent of the net management fee revenue from this fund to the Natural History Museum.

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