WWF recently released a report titled “Safeguarding Outstanding Natural Value” which highlights the fact that nearly a third of World Heritage Sites are threatened by oil, gas and mining exploration. In Africa the figure rises to 61 per cent. A Natural World Heritage Site is a place that is considered a place of outstanding natural value such as the Great Barrier Reef or the Grand Canyon.
The report also incorporates investor sentiment
The report was produced by WWF in collaboration with Investec Asset Management and Aviva Investors and says the risk is higher than what was previously thought. It highlights the investment risk that arises from being involved with resource companies that are trying to extract from special places either now or in the future.
Damage could be irreparable
Natural World Heritage sites cover less than 1 per cent of the planet. These sites are at increasing risk of being exploited for the natural resources they hold which could cause damage that is irreparable. This would have the follow on effect of causing damage to the livelihoods of the communities that depend on these amazing places. Additionally these sites serve as home to some of the rarest animals on Earth such as the mountain gorilla, whales and snow leopards.
There is a financial risk
Basically the report expresses concerns regarding threats from active operations by resource company extractions, or as a result of concessions for exploration that overlaps these sites. Investors are being warned that there is exposure risk if they invest in companies involved in these activities. The report suggests there is a financial risk and a reputation risk and concludes by saying there is far too much risk for not enough rewards.
Investors urged to read the report
WWF is urging investors to read the report and communicate with the natural resources industry in order to encourage the companies involved with the wider adoption of ‘no go’ and ‘no impact’ commitments. Companies should also disclose their existing or intended activity within or near natural World Heritage Sites.
WWF-UK’s Chief Executive David Nussbaum said “We are going to the ends of the Earth in pursuit of more resources – resources, including minerals, oil and gas, that are becoming more difficult and more expensive to extract. Some of the world’s most treasured places are threatened by destructive industrial activities that imperil the very values for which they have been granted the highest level of international recognition: outstanding natural value.
“Protecting these iconic places is not only important in terms of their environmental worth; it is crucial for the livelihoods and future of the people who depend on them. Working with industry leaders such as Aviva and Investec will help us to get this message out to the wider finance industry. Investors have a unique opportunity, and indeed responsibility, to be stewards of capital and shape our future.”
