Robeco has introduced the Biodiversity Traffic Light, a new tool designed to help investors assess corporate biodiversity risks and align portfolios with nature-positive outcomes. Developed in response to growing investor concern over nature loss as a systemic financial risk, the tool supports capital allocation decisions using sector-specific metrics and forward-looking analysis aligned with the Taskforce for Nature-Related Financial Disclosures (TNFD).
The Biodiversity Traffic Light evaluates companies based on both current environmental impact—such as water usage, hazardous waste, and non-GHG emissions—and future commitments, including governance, disclosures, and biodiversity targets. Companies are categorized into four levels: aligned, aligning, partially aligning, or misaligned.
This framework enables investors to conduct biodiversity screening, reweight portfolios toward nature-aligned firms, and enhance engagement strategies. By integrating third-party data and nature-specific benchmarks, the tool extends biodiversity analysis across sectors traditionally excluded from nature risk assessments.
“By identifying leaders and laggards, the tool can help investors allocate capital toward companies that are making meaningful progress in mitigating their impacts on nature,” Robeco stated. The initiative positions biodiversity alongside climate as a critical axis for sustainable investing.
