Genus Capital Management Introduces Biodiversity Screen as a Cornerstone of Impact Investing

VANCOUVER, BC, March 15, 2024 /CNW/ - Genus Capital Management, a Canadian asset manager specializing in sustainable and responsible investment solutions, is proud to announce the implementation of its newest investment screen focused on biodiversity. Recognizing biodiversity as both an ethical imperative and a financial consideration, Genus Capital Management aims to align investment portfolios with natural capital conservation goals.

With the new biodiversity screen, Genus Capital Management takes a bold step in excluding companies with low biodiversity performance from its investment portfolios. This action reflects the company's commitment to promoting environmental sustainability and ethical investing.

Genus Capital Management recognizes the systemic risks associated with biodiversity loss and aims to address these concerns through its innovative biodiversity screen.

The screening methodology employed by Genus Capital Management targets underperforming companies in raw materials sourcing, water stress, and biodiversity. By eliminating corporations significantly contributing to biodiversity loss, the company seeks to enhance natural capital conservation and potentially improve long-term portfolio performance.

Genus Capital Management employs data from MSCI to exclude 40 of the lowest-performing companies in terms of biodiversity impact. This rigorous approach ensures that investments align with biodiversity conservation goals and exclude companies facing criticism for unsustainable practices, such as Bath & Body Works' palm oil sourcing.

Biodiversity risks are recognized as systemic threats to portfolios and beneficiaries, underscoring the economic significance of biodiversity conservation. This screen emphasizes the need to consider biodiversity risks alongside traditional financial metrics. Biodiversity-focused investments not only contribute to environmental preservation but may also bolster financial returns. Genus highlights the potential link between biodiversity and financial success, demonstrating that responsible investing can align with both environmental and financial goals.

The Global Biodiversity Framework emphasizes equity and justice outcomes in conservation. Biodiversity has a substantial impact on economic activity, influencing a significant portion of the global economy. Investing in nature is positioned as a strategy to improve equity and economic returns.

"We are proud to introduce the Biodiversity Screen as part of our commitment to sustainable and responsible investing," said Mike Thiessen, Chief Sustainability Officer and Co-Chief Investment Officer at Genus Capital Management. "By excluding companies with low biodiversity performance from our clients' portfolios, we aim to contribute to the preservation of our natural capital while providing investors with opportunities for both ethical and financially sound investments."

Genus Capital Management invites investors, financial professionals, and the media to explore the transformative impact of this Biodiversity Screen on responsible investing. 

About Genus: Genus Capital Management is an investment counseling firm managing pension funds, endowments, trusts, foundations, and individuals from across Canada. Genus is a Certified B Corp asset manager who has been at the forefront of sustainable investing for over 30 years. Impact and sustainable investing have grown to become the core of Genus' offerings after decades of evolution designed to meet the needs of investors who are passionate about climate action.

Our investment capabilities encompass an extensive range of global equity, fixed income, specialty mandates and Fossil Free investments.

SOURCE Genus Capital Management Inc.