Your weekly guide to Sustainable Investment

Investing in biodiversity is a must

 

By: by Triodos Investment Management
 

The loss of animals, plants and our natural ecosystem has a major impact on our economy and poses a threat to the survival of humanity. Institutional investors are increasingly considering biodiversity loss to be a material risk for their investments. “This is a crucial first step. However, capital allocation is lagging, despite the availability of good and profitable solutions that make sense,” says Karel Nierop, Head of Products and Solutions at Triodos Investment Management.

Many pension funds are still hesitant to fully embrace biodiversity as an investment theme. The numerous definitions and the high level of abstraction may contribute to this reluctance. Nierop: “In fact, it's very simple: biodiversity ensures that nature functions properly and more than 50% of the global economy depends on this.”

According to Nierop, biodiversity loss should be regarded equally as seriously as climate change for that reason alone. Like climate change, biodiversity loss is a systemic risk, argues Nierop. “Biodiversity loss destroys precisely what we depend on economically. Once you recognise that, the rest follows logically: investment policy, selection criteria and accountability to participants. All investments have an impact on biodiversity, unfortunately mostly negative at present. If we make the right choices, however, it can also be positive.”

No more excuses for inaction

According to Nierop, pension funds are mainly struggling with the practical implementation of a biodiversity strategy. His advice: “Don't wait too long and recognise biodiversity loss as a material risk at least.” A common objection is that it is difficult to measure the impact of biodiversity investments and therefore difficult to account for them to stakeholders and participants. Nierop understands the need for indicators and standards. "But that should not be an excuse for inaction. Back when we started climate investing, there was no single, overarching framework in place.”

There are plenty of starting points for creating a framework. The main causes of biodiversity loss are now clear: climate change, pollution, habitat loss and overexploitation. “Measurable indicators already exist for these, such as soil health, species diversity and land use,” says Nierop.

New technology is making it increasingly easier to measure these indicators. “Satellite data and drones can be used to map changes in land use and soil quality over time. Echo technology can be used to measure a forest’s species diversity based on sound. AI models are improving analysis, pattern recognition and predictions. But someone needs to measure it. That goes hand in hand with actual investment.”

A biodiversity strategy limits risks

What are the potential risks and returns associated with biodiversity investments? Nierop argues that there are plenty of opportunities to take the first steps in this area, such as regenerative agriculture or forestry. “Agriculture and forestry have been asset classes for years. They have stable cash flows and a low correlation with financial markets. That dynamic does not change because you start farming in a more nature-inclusive way or manage forests differently.”

In fact, a biodiversity strategy can actually reduce risks. “Regenerative agriculture improves soil quality, which makes an area less vulnerable to flooding or drought. Healthy soils, for example, retain more water. These are all factors that not only protect and improve biodiversity, but ultimately also have an impact on financial returns,” argues Nierop.

Nierop points to the danger of sticking to conventional models. “If you continue to invest in unsustainable agriculture or forestry, you run the risk of these becoming the ‘stranded assets’ of the future. Models that deplete the soil are financially unsustainable in the long term. Research and practice show that nature-inclusive models are more sustainable and financially profitable.”

In addition, we are seeing the emergence of ‘payments for ecosystem services’ (PES): financial compensation for providing or maintaining ecosystem services, such as carbon sequestration, water purification or biodiversity restoration. The best-known example of this are carbon credits, but PES is broader than that. For example, a sustainable forest manager can receive compensation from a drinking water company for improving the quality and availability of water downstream. In July 2025, the EU published a Nature Credits Roadmap to boost private investment in nature-positive actions. “This will enable nature conservation to provide an additional source of income, underpinned by measurable impact and reliable contractual agreements,” says Nierop.

A good start...

Nierop advises pension funds to look beyond a separate ‘biodiversity portfolio’. “Biodiversity is not a separate asset class. It is a systemic risk that should be taken into account in every investment category.”

For listed equities and bonds, the focus is mainly on limiting negative impact. “Consider how companies manage land use or their dependence on natural resources. Companies that damage biodiversity also pose a financial risk.”

For those who want to go further than exclusion, there are also concrete solutions with a positive impact. “We are talking about financing sustainable land use, water management and sustainable food production; economic activities that we depend on every day,” says Nierop. Many of these solutions can be found in private markets.

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Climate change kills, Spanish PM tells deniers at launch of plan to tackle crisis

By: Sam Jones - The Guardian

 

Pedro Sánchez says country’s deadly August wildfires show society needs to mobilise and take immediate action

The Circular Solar Opportunity in Africa:

How Refurbishing Solar Systems Can Reduce E-Waste and Expand Energy Access

 

 

A few years back, amidst the bustling solar energy scene in Ethiopia, a rather disheartening trend caught my eye. I was working with several international solar companies that were building their operations across the country, and my job brought me into contact with the local importers and distributors that were bringing these solar products to remote rural communities. Behind their warehouses, tucked away in forgotten corners or sitting on the shelves of rural shops, I would regularly see mountains of discarded solar home systems gathering dust.

The reason those places were full of broken or discarded solar equipment was because they simply didn’t have what they needed to fix them: no spare parts, no trained technicians, and definitely no proper tools for handling lithium-ion batteries safely. So when something went wrong — often just a minor battery issue — there was no way to troubleshoot or repair it. Customers would return the systems, importers or distributers would stash them away in storage, and over time, those once-useful products turned into useless stock before ultimately being discarded.

But these products weren’t just old equipment; they were once lifelines that provided affordable energy access to rural households. Over a decade, I’d seen over 200,000 of these units light up Ethiopian homes. I saw how transformative they were at first … and then noticed how many of them started failing, often within just a couple of years. I couldn’t ignore the pattern I kept seeing: Systems that could’ve been repaired or upgraded were being abandoned far too soon. Making matters worse, not only were these units no longer serving local communities, it was clear that they were exacerbating the country’s ever-growing e-waste problem — and there was no real solution in sight.

That was the turning point. It sparked a question that has shaped my subsequent career path: What if these systems didn’t have to meet such an early demise?

The Untapped Potential Hidden Within E-Waste

After seeing the scale of the issue firsthand, I made the difficult but necessary decision to leave my job. I felt a strong sense of responsibility: not just to talk about the problem, but to be part of the solution. Quitting gave me the freedom to focus fully on this challenge, roll up my sleeves, and begin the hands-on work of testing and reviving discarded solar systems. It was a leap of faith, but one I knew I had to take.

From that point, I began small. I bought my first batch of 800 broken solar home systems from a local warehouse. Most of them were units returned by customers due to issues that weren’t fixed in time, and some had never even made it to the end user because they were found to be defective before being sold. That initial purchase gave me a chance to really understand the types of faults involved, and to test whether refurbishment was possible. It was the first real step in turning my idea into action.

I set up a workshop in a cramped space right next to my Addis Ababa office and enlisted the help of two technicians, armed with just a few basic tools. We worked long hours, meticulously taking apart each system, testing every single component and learning from our mistakes.

We had our fair share of setbacks in the beginning, but we slowly found our rhythm. With each successful repair, our confidence grew. Eventually, we were able to revive an impressive 80% of the salvaged units. That experience taught me two invaluable lessons: There is immense, untapped potential hidden within this e-waste, and this value could form the foundation of a sustainable business model.

And so, in 2022, I put my savings on the line and launched Inter Ethiopia Solutions, a venture centered on the circular economy. Our goal was simple: to breathe new life into discarded solar and lithium-ion battery products by refurbishing and reselling them, lowering the environmental impact of e-waste, and providing clean, affordable energy to the communities that needed it most.

A Circular Economy Solution for Solar Energy

Today, Inter Ethiopia Solutions, operating out of Addis Ababa, stands as a pioneer in the circular economy. To my knowledge, we’re the first business in Ethiopia to take a truly systematic approach to refurbishing solar home systems and repurposing lithium-ion batteries into second-life energy products. What makes our model unique is that it combines technical innovation with grassroots distribution and a strong circular economy focus. We’ve even applied for a patent to protect the refurbishment method we’ve developed, which covers everything from diagnostics and repairs to tracking and warranty services.

We specialize in refurbishing solar home systems and creatively repurposing lithium-ion batteries to offer cost-effective energy solutions for off-grid areas. Where regular repurposing might involve reusing a functional battery in another solar home system (something which is valuable in itself), our approach pushes the boundaries. We take second-life lithium-ion cells and redesign them into completely new configurations with different voltages, capacities and management systems — for example, custom battery kits for powering small business use cases that were never part of the battery’s original life cycle. This requires both technical innovation and a deep understanding of community needs. It’s about transforming waste into entirely new energy solutions that serve local economic development.

Through this model, we’ve turned discarded waste into a valuable resource, collecting thousands of systems, meticulously testing and repairing them, and then returning them to the market at prices that are 40–60% lower than new imports. Every refurbished lithium-ion battery product is barcoded and logged into our custom inventory system, enabling us to track its journey, handle warranties efficiently and provide reliable after-sales support. Our team has grown to include 16 skilled professionals with expertise in electronics, logistics, renewable energy and marketing. We work in collaboration with rural shops, local agents and NGOs, which are involved in both the sale of refurbished units to remote customers and the sourcing of failed units to be refurbished. These partnerships help to ensure that our repaired systems reach even the most remote areas.

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