The problem
From 2000 to 2015, more than one fifth of the Earth’s total land area was degraded, largely due to human-induced processes such as desertification, cropland expansion and urbanization. Deforestation and forest degradation account for 10-15% of the world's green house gas emissions, and threaten the livelihoods of more than 1 billion people who depend directly on forests. Additionally, the spread of invasive species and illicit poaching of wildlife are thwarting efforts to protect ecosystems and species. Corporations play a critical role in protecting forests and biodiversity, especially those in agricultural and food industries. Corporations can avoid contributing to deforestation directly (within their own operations) and through engagement with their supply chain (for example, more than 95% of the palm oil industry has made a commitment to 'zero deforestation'). Leading companies also report their progress on ending deforestation publicly and transparently, engage with international collaborative efforts to end deforestation, and perform highly in related climate areas (such as reducing greenhouse gas emissions)
How companies are rated
Ethos is using 207,515 unique data points since 2017 to rate companies, stocks and funds on terrestrial biodiversity, including from these metrics:
Financial performance
r =
Company ratings 1-yr return
Top 10 for terrestrial biodiversity
Top 50 for terrestrial biodiversity
S&P 500 Index
Bottom 50 for terrestrial biodiversity
Bottom 10 for terrestrial biodiversity
Terrestrial biodiversity has a slight negative correlation (
) with financial returns, meaning companies that perform poorly in this impact area tend to perform slightly better financially
Data partners and sources
What this formula is about
UN Sustainable Development Goal 15