Sheikha Shamma bint Sultan bin Khalifa Al Nahyan is a social entrepreneur focused on sustainability, gender equality and international development
December 18, 2022
In Montreal, there has been a lot of buzz around Cop15, a UN conference being hosted in the city that is about protecting and restoring biodiversity. This Conference of Parties (Cop) is different from the more notable one on climate change, which the UAE will be hosting in 2023, though the challenges facing climate change and biodiversity are linked.
Approximately one eighth of all plant and animal species are threatened with extinction for myriad man-made reasons that range from the over-exploitation of resources to deforestation. And as a single species perishes, the web of life we rely on unravels.
Biodiversity is the abundant mix of flora and fauna that make up our planet’s ecosystems. These ecosystems support our own species in many ways. Plants purify the air we breathe and filter water; bees are responsible for a quarter of our food supply, and $577 billion in crops; and even bacteria are important in helping to break down waste. We take many of the benefits we receive from biodiversity for granted. One economist who tried to put a price on it estimated it to be $33 trillion. We share the same atmosphere, so the world needs to unite to address these challenges for humanity’s future.
The organisers of Cop15, which ends on Monday, are hoping to get countries on board with committing to protect 30 per cent of our land and oceans by 2030. As in all these major conferences, in which all the world’s countries come together, the questions nearly always go back to finance: how do we protect countries’ biodiversity hotspots, such as the Amazon, without impacting the economy or asking those countries to carry the burden for other nations? One of the Cop15’s goals is to create a Global Biodiversity Framework, which would be an important international agreement.
People plant mangroves during an event organised by Companies for Good on Jubail Island, Abu Dhabi. All photos: Vidhyaa Chandramohan
To fight climate change, the UAE is carrying out projects such as reducing emissions and planting mangroves.
Mangroves, trees that survive in salty water, play an important part in the ecosystem.
By 2030, the UAE intends to plant 100 million mangroves.
Visitors at Jubail Mangrove Park. Schools and businesses are planting saplings as part of the UAE's campaign.
Volunteers during a mangrove clean-up organised by the World Wildlife Fund and Seahawk Abu Dhabi.
Young mangroves can be damaged by plastic and other waste dumped into the sea.
Volunteers sort rubbish gathered during a clean-up of mangroves in Abu Dhabi.
After collecting debris from the mangroves, volunteers use an app to track their progress.
The grey mangrove is the species that grows extensively in UAE.
Visitors enjoy an evening paddle by the mangroves and a sunset view of Abu Dhabi.
Walking around the exhibition centre, I saw signs that pointed towards humans living in harmony with nature by 2050. It seemed like most societies have such a long way to go. Research has shown that indigenous people – who, although few in number, consist of 5 per cent of the world’s population – protect and conserve 80 per cent of the world’s biodiversity.
In the distance, I spotted a large piece of wood approximately a metre-and-a-half in diameter. It was called “the cookie”. Individuals were standing around it, listening to its origin story. It came from a forest in British Columbia, where many of the trees are a thousand years old. This one was 750. Ninety-seven per cent of the old-growth forest in British Columbia has been destroyed.
Coral reefs are important to life, too – particularly marine life. I recently went diving off the coast of my home city, Abu Dhabi, and witnessed first-hand the effects of climate change on our corals. On one of the corals I saw, which looked like a brain, one side was dead while the other was fighting to survive.
I am proud of the coral conservation work done in the UAE to fight this challenge, especially in Abu Dhabi. At Cop15, the Environment Agency – Abu Dhabi’s coastal and marine preservation programmes were ranked among the top 10 globally by the UN Environment Programme. Among their many activities, they have cultivated more than a million coral reef colonies. All the people working for nature are guardians of our future. They work tirelessly for our planet, and I am thankful for everything they do.
The time for strategic leadership and a refreshed vision is now. Joint actions from governments, businesses and the finance community are urgently required to reimagine our relationship with nature and to catalyse regeneration – especially to meet the target of conserving 30 per cent of land and marine ecosystems by 2030. As we go through various scientific reports and especially the findings presented by various global entities on nature and biodiversity, we soon realise that it is imperative for these groups to tackle the nature and climate crisis collaboratively and holistically. And we have seen during the pandemic how nature can thrive if we give it the space to regenerate.
An indigenous climate activist protesting during Cop15. AFP
It would be prudent to view nature and climate crises as two sides of the same coin and combine our net-zero strategies to work in tandem with protecting nature. This approach can be further developed by combining climate and nature-linked losses to existing climate change risks. Furthermore, it is vital that nature is placed at the centre of policy and regulations by governments, to empower and enable business and finance to drive activities aligned with nature restoration and regeneration and act to end the over-exploitation of nature, for example, through the provision of harmful subsidies.
It is also important that dialogues on nature and biodiversity must be facilitated across business and finance to adopt a regenerative model for nature. At the same time, financial institutions should integrate nature into financial decision making to embed relevant risks and ultimately support the transformation of the economy.
Lastly, as a society we must wake up to the truth of the various challenges we are experiencing regarding nature and biodiversity loss, and come together as individuals and as nations to take deliberate steps towards addressing the same.
With all the great work being done in the UAE and globally, there is a reason to be hopeful, but time is not on our side.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”