ABSTRACT
The extinction accounting framework is setting a new standard in terms of emancipatory accounting in the middle of the current mass extinction crisis. This chapter explores the role that financial markets participants can play in providing meaningful and long-term nature-linked mitigation and adaptation strategies for financial markets. Investor engagement activities related to species extinction became an established practice in the last decade. One of the key engagement initiatives started in 2016 with Hermes EOS co-organising a dedicated species extinction engagement programme, supported by an event for asset owners, in London. Although biodiversity loss poses great challenges, and potentially significant economic and financial risks to all actors, it also provides new investment opportunities, in active and passive investment, and across capital markets.
