This article forms part of our "Spotlights: Impacts in action" series looking at the impact our responsible business framework is having on clients, colleagues, communities and governance.
Article last updated 3 April 2026.
Nature is a key engagement theme for our Group’s stewardship team and has been a central focus at Greenbank, our sustainable investment team, for several years.
The reason is clear: nature and biodiversity are the bedrock of healthy societies, resilient economies, and successful businesses. About half of global GDP, US$44 trillion, is estimated to be moderately or highly dependent on nature1. When ecosystems are degraded, companies face a cascade of risks including:
- Physical risks from disrupted supply chains and resource scarcity
- Transition risks caused by shifting regulations and market expectations
- Systemic risks that can ripple across whole sectors and economies, causing disruption.
For investors, these risks threaten long‑term returns. Proactively managing nature‑related risks is not just a matter of responsibility, it can support efforts to preserve value and strengthen business resilience in a rapidly changing world.
Nature‑related impact and dependency assessments are now a key expectation of leading global frameworks. Standards such as the Kunming‑Montreal Global Biodiversity Framework (GBF), the Taskforce on Nature‑related Financial Disclosures (TNFD), and the Finance for Biodiversity Pledge all call on investors and large businesses to systematically assess and disclose their risks, impacts, and dependencies on nature throughout their operations, value chains, and portfolios. A critical next step is for private finance to shift capital away from activities that harm nature, using engagement and advocacy to encourage positive change.
In January 2025, Greenbank set three nature targets, including a commitment to assessing and publicly disclosing nature‑related dependencies, impacts, risks, and opportunities in relevant investments. To date, Greenbank has completed a heatmap assessment to identify high‑risk areas within its investment portfolio, and operations that may need further analysis and started a detailed analysis of these sectors.
Greenbank’s assessment revealed that 30% of in‑scope investments fall within priority and secondary sectors, defined as having material nature‑related impacts, notably electricity utilities and pharmaceuticals. These sectors tend to have high levels of greenhouse gas emissions, water use, and pollution. In Greenbank’s investment portfolio, freshwater use and widespread pollution (including air, water, and soil contaminants) were identified as the most prevalent drivers of nature‑related impacts.
These findings highlight the importance of targeted stewardship and analysis to address nature‑related risks and dependencies on natural resources, which could otherwise reduce the competitiveness and performance of our investments.
Greenbank is also piloting a deeper assessment into the pharmaceuticals sector, enabling more detailed tracking of nature‑related risks and dependencies at the asset level. This approach is being refined, before broader application across other sectors.
The assessment will lead to the development of KPIs to track for companies in high impact sectors, aligned with TNFD guidance, enabling ongoing monitoring and management of nature‑related risks and opportunities.
Key lessons from Greenbank’s experience include the ongoing challenges of limited and inconsistent nature‑related data, as well as the current lack of location‑specific disclosures, the need to tailor assessment frameworks for different sectors, and the importance of prioritising high‑risk areas due to the resource‑intensive nature of impact and dependency assessments.
In 2025, Greenbank’s insights and experience were provided to the Rathbones Climate and Nature Working Group and the Responsible Business Committee. These learnings are helping shape the Group’s approach to nature‑related issues within our investment activities. Building on Greenbank’s leadership, the Group will continue to strengthen its capabilities in this area, recognising that meaningful progress is needed ahead of our 2027 Group‑level reporting.
