During Climate Week NYC, Sophia Cheng, Chief Investment Officer of Cathay Financial Holdings (Cathay FHC), shared critical insights on the role of corporations in fostering nature-positive investments. Speaking at the World Biodiversity Summit on September 26, Cheng contributed to the session titled “Valuing Natural Capital: Creating Markets for Nature.” She emphasised the importance of corporate responsibility in driving sustainability, emerging trends, and actionable strategies to support biodiversity.
This marks the third consecutive year that Cathay FHC has participated in Climate Week NYC, showcasing its global influence and commitment from Taiwan’s financial sector to promote nature-positive growth. Cheng was also the sole representative from Taiwan invited by Ceres to address the “Building Corporate Climate Resilience through Water Resource Management” session.
In her address, Cheng highlighted the urgent need for increased capital to support nature-positive initiatives. She cited research from Bloomberg, revealing that only USD 166 billion is allocated annually for biodiversity conservation and restoration, a figure five times less than the estimated USD 996 billion needed each year by 2030. “We need more resources invested in sustainable supply chains, impact investing, and ecosystem building to expand the biodiversity market,” she stated.
Cheng pointed out that 45% of the 416 organisations from 51 countries adopting the Taskforce on Nature-related Financial Disclosures (TNFD) are based in Asia. This trend suggests that Asian companies are eager to engage in nature-positive initiatives as global frameworks become clearer.
Recognising the complexity of biodiversity and nature-related sectors, Cheng proposed establishing a global biodiversity project platform. This platform would connect diverse funding sources with nature projects while setting consistent standards to enhance market efficiency and stability. She cited the World Bank’s “Rhino Bond,” which ties bond yields to the success of rhino conservation efforts. This initiative has already resulted in an 8% increase in the black rhino population, showcasing the dual benefits for both biodiversity and investors.
Throughout the Climate Week discussions, Cheng and her fellow panelists expressed concerns over the general lack of attention given to biodiversity loss. However, they maintained a positive outlook, underscoring the potential for biodiversity recovery through practical measures. These include the development of the Global Biodiversity Framework, the rise of biodiversity credit schemes, and advancements in technologies like artificial intelligence, all aimed at promoting nature-positive growth.
The panel underscored the notion that “with great power comes great responsibility,” urging both public and private sectors to collaborate in building a more impactful market that integrates biodiversity. Cheng concluded by asserting that “everyone can influence a stakeholder, and the more we engage, the more successful natural investments will be.”
At the Ceres Water Resources Forum, Cheng further emphasised the critical importance of water resources for human life and global ecosystems. She revealed that Cathay FHC and its subsidiaries are committed to analysing companies in their investment portfolios with high water resource risks. Cheng praised Taiwan’s high-tech industries for their proactive approach to water-related challenges and called for broader efforts in water governance to mitigate greenwashing risks.
As the only Taiwanese financial institution to sign the “Valuing Water Finance Initiative,” Cathay FHC is leading the way with innovative financial models that promote nature-positive outcomes. Cathay Life Insurance, a subsidiary of Cathay FHC, has also collaborated with 190 international institutional investors to engage companies in sectors significantly impacting natural habitats and biodiversity. Cheng expressed optimism for continued public-private collaboration in achieving nature-positive goals and overcoming financial barriers.