Top biodiversity stocks to watch

The degradation of nature in the UK will cut 4.7% off GDP within the next decade if businesses do not make a greater effort to invest in these solutions and slow down the decline, according to a report.

Published by the Green Finance Institute and WWF, the report Business Investment in Nature: Supporting UK Economic Resilience and Growth also found the global economy could lose up to 50% of GDP between approximately 2070 and 2090 due to climate change and noted nature-related risks, including water scarcity, pollution, flooding, soil degradation, and resource scarcity, are already disrupting key sectors such as housing, energy, agriculture, manufacturing and tourism.

PA Future asked sustainable investment professionals to share the biodiversity stocks they are watching – and holding in their portfolios – as nature-related risks and solutions continue to gain prominence.

Charlie Thomas, CIO and manager of the EdenTree Green Future fund

Although still a relatively nascent area, with a small but growing cohort of pureplay funds, the opportunity to invest in biodiversity-related companies goes back several decades.

A notable name held in the EdenTree Green Future fund, which has been in my portfolios for over 20 years, is Stantec. Established in Canada in the 1950s, Stantec is an environmental consultancy offering a full-spectrum biodiversity-related services from planning and assessment to implementation and monitoring of nature-based solutions. The company works on projects across a wide range of sectors including energy, transportation, mining, and manufacturing – areas traditionally associated with the erosion of environmental and biodiversity health that are increasingly seeking to reduce their environmental impacts to meet the needs of regulation and wider stakeholders.

See also: Myth busting in biodiversity

Stantec’s expertise blends industrial scale project management, engineering and ecosystem science, allowing it to tailor biodiversity strategies to diverse industry needs. These solutions support ecosystem recovery, flood risk management, water quality, carbon sequestration, and corporate sustainability goals.

To provide a local example, Stantec has long been a strategic partner with Yorkshire Water, working with the company between 2020 and 2025 on a programme to meet new water industry phosphorus standard and green their wastewater treatment approach (among other projects).

Central to Stantec’s business proposition is its urban and commercial planning division, which plays a critical role in developing strategies that not only mitigate environmental impact but also enhance nature-based solutions. Addressing the nature-based challenges of an increasingly urbanised world is often overlooked but is, in fact, a vital component of addressing global biodiversity challenges.

At the corporate level, the company positions biodiversity not merely as a compliance issue but as a strategic investment. Their biodiversity consultancy provides expert monitoring and auditing, as well as guidance to reduce material risks and support adherence to TNFD.

From an investment perspective, the company has expanded both organically and through acquisitions over the past decades to become a leading global environmental consultant. We believe Stantec’s biodiversity solution offering, which forms part of a wider consultancy service that touches many major areas of the economy, is unique and has potential for sustained long-term growth as biodiversity improvement continues to gain prominence and international policy support.

Thomas Skovbjerg, portfolio manager of Nordea’s Global Climate Transition Engagement strategy

Landfilling of household waste is an environmental problem, as significant volumes of methane and carbon are emitted as the landfilled waste decays over time. The methane emissions represent a particular concern as methane is 28x as potent as carbon in terms of generating global warming.

Companies can mitigate this through improved collection systems, organic waste diversion – composting or anaerobic digestion – and landfill gas capture for energy generation. While many methane mitigation options in this sector are still generally more expensive or technically complex than in oil and gas extraction, companies are increasingly adopting technologies to track emissions more accurately and capture methane for beneficial use in the form of renewable natural gas.

See also: The progress we’re seeing on our methane engagement

US-based group Waste Management operates 263 landfills across North America and has implemented gas collection systems that capture approximately 80% of landfill methane. Of this captured gas, Waste Management sells 43% as renewable natural gas, generating enough renewable energy to power more than 300,000 homes. The remaining 57% is lit as flares, generating less potent GHG emissions in the form of CO2.

To advance its position as a sector leader in methane management, Waste Management is working to increase its beneficial use percentage even further, which would not only reduce emissions but also generate additional revenue streams.

Enhancing methane measurement technologies could potentially reveal additional capture opportunities. By effectively monetising methane reduction while delivering substantial climate benefits, Waste Management is well-positioned to achieve both environmental and financial outperformance.

Adrien Cambonie, portfolio manager of the UBAM – Biodiversity Restoration fund

Stantec is a global leader in sustainable infrastructure, serving public and private sector clients across areas like buildings, industry, water, and environmental services. The company helps to reduce environmental impact by enabling resource-efficient construction but also improve buildings’ lifecycle footprint by lowering waste streams and improving energy efficiency. Stantec also delivers digital water management solutions to optimise water supply and usage, while offering environmental remediation services to restore natural assets and remove emerging contaminants such as PFAS. Its coastal resilience services help protect vulnerable ecosystems from urbanisation and climate risk.

A standout example of Stantec’s innovative approach is its Integrated Constructed Wetlands (ICW) project in the UK. This nature-based water treatment system is designed to mimic the functions of natural wetlands by combining shallow ponds, diverse vegetation, soil, and microbial activity to filter pollutants from wastewater. The system used 24,000 plants from 25 different species, resulting in a biodiversity net gain of 40%. It was one of the first wastewater treatment works in the UK to achieve such an outcome, setting a benchmark for ecologically sensitive infrastructure.

Stantec’s growth is driven by global trends such as rapid urbanisation, population growth, and increased migration. Its nature-positive solutions are becoming central to sustainable development worldwide.