Danske Bank Asset Management assessed the progress of the biggest 100 companies in the Nordic region in recognising and managing their impact on biodiversity.

It evaluated 'The Biodiversity Management Quality' of these companies, focusing on how well they govern and manage their biodiversity impacts and dependencies, alongside risks and opportunities tied to transitioning towards a nature-positive economy.

It used a proprietary biodiversity assessment framework inspired by that used by the Transition Pathway Initiative (TPI) for climate, based on indicators linked to TNFD, Business for Nature, FAIRR and Science-based targets for nature (SBTN).

The white paper, Navigating Biodiversity: A review of 100 Nordic Companies, found that:

• While most companies recognise biodiversity as a relevant risk and/or opportunity for the business, 73% of the Nordic companies are having issues with the complexities of addressing biodiversity risks and establishing governance and credible targets.
• Most Nordic companies do not have credible targets or plan to minimise their impact.
• On average Danish companies receive a lower Biodiversity Management Quality rating compared to Nordic peers.
• Companies are far from fulfilling the recommendation and guidance that the Taskforce on Nature-Related Financial Disclosures (TNFD) have set out in 2023.

"We believe that good biodiversity management may lead to lower negative impact on nature in the future, because companies with good biodiversity management are more likely to set and deliver on their biodiversity targets," said Danske Bank.

Danske Bank Asset Management has committed to engaging with 30 global companies, impacting nature and biodiversity, by the end of 2025. It hopes the framework can inspire others to develop robust nature stewardship and engagement strategies.