Robeco is expanding its impact investment range with a new Article 9 biodiversity equities strategy, the RobecoSAM Biodiversity Equities fund.
The fund invests in companies that support the sustainable use of natural resources and ecosystem services, as well as technologies, products and services that help to reduce biodiversity threats or restore natural habitats, the firm said.
It specifically targets alpha generation opportunities in the structural growth trend created by governments, corporates and consumers that are increasing focus on supporting biodiversity and the transition to a nature-positive world.
RobecoSAM-branded range of impact investing strategies aims to generate attractive long-term, risk-adjusted returns while "simultaneously making a difference on the ground".
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David Thomas, senior portfolio manager and Aaron Re'em, co-portfolio manager manage the strategy within Robeco's Zurich-based thematic investment team, which runs a suite of strategies with over €12bn in assets under management.
Mark van der Kroft, CIO of fundamental and quant equity at Robeco, said: "RobecoSAM Biodiversity Equities is the culmination of one and a half years of work to create a product that specifically promotes biodiversity in an impact investing style, rather than just investing in environmental or climate-related stocks generally."
Van der Kroft said that the launch of the strategy marks "yet another milestone" in the biodiversity roadmap the firm outlined earlier this year.
Thomas added: "The potential market for new biodiversity-friendly investments by 2030 is more than $10trn, according to the World Economic Forum.
"Together with my colleague Aaron Re'em and the wider team of investment and SI specialists, we aim to deliver to our clients an exciting and meaningful opportunity."
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The strategy's investable universe is arranged in four clusters covering sustainable land use, freshwater networks, marine systems, and traceable products.
According to Robeco, engagement forms a "vital" part of this strategy, with Robeco's Active Ownership team engaging with up to 25% of portfolio holdings to further improve their contributions to biodiversity.
For the fund design and active ownership, Robeco has sought advice from World Wide Fund for Nature Netherlands (WWF-NL) on biodiversity issues.