Publication Type

PhD Dissertation

Version

publishedVersion

Publication Date

4-2026

Abstract

Biodiversity loss has emerged as a systemic challenge with far-reaching implications for ecological stability, economic activity, and long-term financial resilience. Despite growing recognition of nature-related risks in finance, biodiversity remains far less developed than climate within investment analysis, particularly at the portfolio level. This dissertation addresses that gap by examining how biodiversity impacts can be measured, valued, and interpreted within an investment portfolio concentrated in resilient and essential sectors of the economy.

The study constructs a Global Essential Economic Systems Portfolio comprising 16 publicly traded companies operating across non-discretionary sectors, including agriculture, energy, materials, pharmaceuticals, utilities, infrastructure, telecommunications, and financial services. Using Potentially Disappeared Fraction of species per hectare per year (PDF·ha·yr) as the principal biodiversity metric and drawing on Global Impact Database (GID) Biodiversity Impact Data, the dissertation develops an analytical framework that combines biodiversity footprinting, monetisation, and portfolio attribution. This approach makes it possible to translate ecological damage into information that is more meaningful for investment and portfolio analysis.

The findings show that biodiversity impacts within the portfolio are highly uneven and overwhelmingly driven by indirect value-chain effects rather than firms’ own operations. The base-case portfolio records a total attributed biodiversity impact of 774,364 PDF·ha·yr, equivalent to an estimated monetised biodiversity loss of -USD 2,833,729,468. Approximately 94% of the physical impact arises from value-chain activities, indicating that biodiversity pressure in essential sectors is transmitted largely through upstream and downstream production networks. The results further reveal strong concentration, with a small number of holdings accounting for a disproportionate share of the total footprint. In addition, the sensitivity analysis suggests that selected reweighting approaches can reduce biodiversity footprint while preserving, and in some cases improving, portfolio performance.

Overall, the dissertation contributes to the emerging biodiversity finance literature by offering a replicable portfolio-level framework for measuring and valuing biodiversity impacts. It also provides practical insight for investors, policymakers, and disclosure initiatives seeking to incorporate biodiversity into financial decision-making.

Keywords

nature, biodiversity, biodiversity finance, sustainability, sustainability finance

Degree Awarded

PhD in Business (General Management)

Discipline

Finance and Financial Management

Supervisor(s)

LIANG, Hao

First Page

1

Last Page

195

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Author

Download

Share

COinS