The Living Planet Index (LPI) is a tool developed by the Zoological Society of London (ZSL) in collaboration with the World Wide Fund for Nature (WWF). It measures global biodiversity by tracking population trends of vertebrate species across terrestrial, freshwater, and marine habitats. The LPI serves as an indicator for the Convention on Biological Diversity’s (CBD) post-2020 goals and the Kunming-Montreal Global Biodiversity Framework.

The primary audience for the LPI includes conservationists, policymakers, researchers, and environmental organisations. However, finance professionals can also benefit from the insights provided by the LPI. Understanding biodiversity trends is crucial for assessing environmental risks that may impact investments, particularly in sectors like agriculture, fisheries, and forestry. The LPI offers data that can inform sustainable investment strategies and corporate social responsibility initiatives.

By integrating LPI data into financial analyses, professionals can better evaluate the long-term viability of projects and companies, considering potential environmental liabilities. This approach aligns with the growing emphasis on Environmental, Social, and Governance (ESG) criteria in investment decision-making. Incorporating biodiversity considerations can lead to more informed risk assessments and contribute to sustainable financial practices.