Assessing portfolio impacts: Tools to measure biodiversity and SDG footprints of financial portfolios

Through case studies using a sample portfolio, WWF looks at how the tools perform, visualize, and process the results. WWF also analyzes strengths and limitations of each tool examined, with suggestions on improving data and aligning terminology to support further uptake of the user base.

While still early days for impact assessment/footprinting, the new tools can be applied to deliver various insights, including 1) comparing a portfolio’s impact footprint with a benchmark, another portfolio, or even itself over time; 2) cross-checking claims of sustainability made by an investment fund, to meet potential certification or disclosure requirements; and 3) identifying leaders and laggards in impact performance within a portfolio, to facilitate portfolio rebalancing or to prioritize corporate engagement. These insights can also provide base information for the Science-Based Targets for nature and the Taskforce on Nature-related Financial Disclosure.