The biodiversity components of ESG ratings are analysed to understand whether and how this disclosure mechanism can … affect investment decisions, improve outcomes for biodiversity and nature or lead to better management of nature based risks …. We analyse the relationship between stock returns and firms’ biodiversity ratings and how biodiversity ratings are …

This paper introduces a new measure of a firm's negative impact on biodiversity, the corporate biodiversity footprint …, and studies whether it is priced in an international sample of stocks. On average, the biodiversity footprint does not … explain the cross-section of stock returns. However, a biodiversity footprint premium (higher returns for firms with larger …