International evidence on the financial performance of biodiversity investing

The biodiversity depletion caused by human activities stands out prominently. Companies are urged to actively reduce the adverse effects they pose to biodiversity. Against this backdrop, financial institutions have recently developed equity indices that track the financial performance of the top companies based on their biodiversity achievements. We examine the financial performance of 10 biodiversity stock indices in contrast to their parent indices from 2022 to 2024. Our findings reveal that investing in biodiversity financial solutions does not entail additional costs when compared to investing in conventional counterparts. This new evidence may bolster the confidence of green investors to consider expanding their investments in financial products that actively promote biodiversity.