Leading stocks in the FTSE 100 index could be hit because they do not meet biodiversity guidelines, says Isis Asset Management.
The firm has published a 55-page report in which it identifies areas where top firms are losing value because they are not taking care of sustaining eco-systems.
The report was commissioned from the Earthwatch Institute Europe and supported by the Department for International Development. Examples where companies are failing include soil erosion, access to clean water, sustaining forests. Many companies may struggle to get access to capital because of high environmental credit risk.
It claims tha two-thirds of FTSE 100 firms are failing to manage risk exposure. However, firms such as BP Shell and Unilever are praised for their management of biodiversity.