7 Jun 2023
The decline in biodiversity is having an ever-greater impact on human health and well-being services, with linkages to disaster risks, diseases, nutrition, medicine, air and water quality being increasingly recognised.
In this edition, we explore how decreasing levels of biodiversity are negatively affecting human health outcomes and examine the support provided by the Convention on Biological Diversity and its various Parties in restoring balance.
The crucial role of biodiversity in supporting ecosystems and delivering ecosystem services is closely connected to human health. Biodiverse ecosystems provide essential services such as food, clean air, medicine, natural disaster risk reduction and spiritual values, which fundamentally influence the mental and physical health of human populations.
This is increasingly being recognised globally by intergovernmental and subnational parties. The World Health Organization’s (WHO) One Health approach (see below) has been supported by many parties such as the Food and Agriculture Organization (FAO), the United Nations (UN), the World Bank and the Convention on Biological Diversity (CBD).
Despite the fundamental role that biodiversity plays in health, its levels continue to decline due to various human activities (Chart 1), which inhibit essential ecosystem services and often lead to negative outcomes for health and well-being. In 2015, the CBD and WHO collaborated on a review of the linkages between biodiversity and health, the risks that biodiversity loss poses to health, and ways forward[@biodiversity-and-health-3]. We dive into these in the following section.
Biodiversity loss poses a risk to the health and well-being of our society across multiple areas which we discuss below.
Biodiversity underpins water systems via regulating nutrient cycles, soil erosion, pollution and water purification. However, while clean water is essential for human health, it’s often polluted by water-intensive industries, such as agriculture, textiles and construction as well as mining activities, which put freshwater and mountain ecosystems at risk. Roughly 2.2bn people don’t have access to safely managed drinking water and sanitation services[@biodiversity-and-health-4] and it’s estimated that unsafe water sources were responsible for 1.2m deaths in 2017[@biodiversity-and-health-5], with the most pronounced impacts on women, children and less developed regions.
Clean air is vital for healthy outcomes, yet air pollution was responsible for approximately 7m deaths in 2012, with asthma and chronic pulmonary diseases becoming more prevalent. Biodiverse ecosystems can play a direct role in removing air pollution and altering meteorological patterns to improve air quality.
The agriculture and food sectors play a fundamental part in providing healthy diets and nutrients. However, farming relies on biodiversity to provide services like nutrient cycling, water regulation, pollination and pest control, which are necessary to support above-ground crops. Agricultural productivity has increased significantly over the last 50 years and approximately 50% of the planet’s terrestrial land is now used for agriculture[@biodiversity-and-health-6], but food insecurity and undernourishment remain prevalent globally. Modern agriculture methods rely on synthetic fertilisers, which can destroy ecosystems and increase the vulnerability of these production systems to yield reliable and nutritious food sources for human health[@biodiversity-and-health-7].
Many of today’s infections and diseases are largely treatable with medicine that owes its existence to biodiversity. The discovery of natural products, particularly antibiotics, has contributed significantly to breakthroughs in healthcare. However, with many species threatened by extinction, we risk losing potential pharmacologic resources, which could have long-term impacts to human health.
At the microbial level, humans rely on the diversity within their bodies to regulate bodily systems. The depletion of microbial diversity in the human microbiome, which can result from reduced contact between people and the natural environment, has been linked to a range of non-communicable diseases across the globe, including allergic disorder, asthma and Crohn’s disease.
Pathogen and infectious diseases can likewise be linked to biodiversity. The encroachment of human activities and the destruction of ecosystems can increase the risk of emergence and spread of zoonotic diseases (infections transmitted from animals to humans)[@biodiversity-and-health-8]. The COVID-19 pandemic has highlighted the pressure placed on habitats and the risk of disease outbreaks. It has also drawn attention to the need to address inequities in global health, including access to medicines.
Biodiversity is an integral part of many cultures and traditions, and exposure to natural environments ultimately enhances mental and physical well-being. However, with urbanisation on the rise and an increasing number of people living in these urban areas, we’re depriving ourselves of the physiological and psychological benefits that nature provides.
The impact of climate change on human health is expected to intensify due to damaged food production, the spread of diseases, reduced air quality, heat stress and natural disasters. Sustainable consumption and production are essential because of demographic changes and their impact on biodiversity and the environment as a whole. Behavioural change is key to the transition, which seeks to protect biodiversity, human health and their complex linkages. Nonetheless, biodiversity can also help to restore ecosystems with the resources necessary to reduce greenhouse gases emissions and build resilience to climate disasters.
As biodiversity is integral to sectors that influence health outcomes, such as pharmacy, biochemistry, biotechnology, tourism and agriculture, its health benefits can help to achieve the Sustainable Development Goals (SDGs), particularly Goal 3, which is to promote “Good health and well-being”. Strategies like nature-based solutions, which encompass urban green spaces and regenerative agriculture practices, can help to find harmony between people and nature.
The Convention on Biological Diversity (CBD) has worked to raise awareness of the interlinkages between health and biodiversity in its efforts to safeguard biodiversity. At the 10th Conference of the Parties (COP10) in October 2010, the Strategic Plan for Biodiversity (2011-2020) was adopted, which included 20 Aichi Biodiversity Targets. These targets aim to address the ongoing decline in biodiversity and to promote the sustainable use of natural resources.
Aichi Target 14 explicitly focuses on ecosystem services that contribute to health, livelihoods and well-being, and the CBD also states that all the Targets have potential linkages to health and well-being. This support for biodiversity and health outcomes was further emphasised at COP12 (2014) and COP13 (2016), where increased collaboration was called upon between the CBD, WHO and other organisations to strengthen the implementation of the plan.
As the global health crisis of COVID-19 swept across the world, a draft Global Action Plan for Biodiversity and Health was devised. This plan aims to support Parties in implementing a biodiversity-inclusive One Health approach and to encourage Parties to incorporate biodiversity and health linkages into national policies.
More recently, during COP15 in Montreal last year, a new Kunming-Montreal Global Biodiversity Framework (GBF) to 2030 was adopted. This frameworks covers conservation, sustainable use, access and benefits sharing, as well as the five main drivers of biodiversity loss - changes in land and sea use, exploitation of organisms, climate change, pollution, and invasive alien species.
The health of humans and the health of the planet are intertwined. And healthy ecosystems require a diversity of biological interactions to deliver ecosystems services. To make progress towards the One Health approach, social and economic development therefore needs to support both humans and nature. Investors should be aware of the increasing focus on biodiversity when it comes to health and well-being so they can position for the opportunities that may arise within the theme.
1. This report is dated as at 22 November 2022 .
2. All market data included in this report are dated as at close 28 November 2022 , unless a different date and/or a specific time of day is indicated in the report.
3. HSBC has procedures in place to identify and manage any potential conflicts of interest that arise in connection with its Research business. HSBC’s analysts and its other staff who are involved in the preparation and dissemination of Research operate and have a management reporting line independent of HSBC’s Investment Banking business. Information Barrier procedures are in place between the Investment Banking, Principal Trading, and Research businesses to ensure that any confidential and/or price sensitive information is handled in an appropriate manner.
4. You are not permitted to use, for reference, any data in this document for the purpose of (i) determining the interest payable, or other sums due, under loan agreements or under other financial contracts or instruments, (ii) determining the price at which a financial instrument may be bought or sold or traded or redeemed, or the value of a financial instrument, and/or (iii) measuring the performance of a financial instrument.
This document is prepared by The Hongkong and Shanghai Banking Corporation Limited (‘HBAP’), 1 Queen’s Road Central, Hong Kong. HBAP is incorporated in Hong Kong and is part of the HSBC Group. This document is distributed by HSBC Bank (China) Company Limited, HBAP, HSBC Bank (Singapore) Limited, HSBC Bank (Taiwan) Limited, HSBC Bank Malaysia Berhad (198401015221 (127776-V))/HSBC Amanah Malaysia Berhad (200801006421 (807705-X)), The Hongkong and Shanghai Banking Corporation Limited, India (HSBC India), HSBC Bank Middle East Limited, HSBC UK Bank plc, HSBC Bank plc, Jersey Branch, and HSBC Bank plc, Guernsey Branch, HSBC Private Bank (Suisse) SA, HSBC Private Bank (Suisse) SA DIFC Branch, HSBC Private Bank Suisse SA, South Africa Representative Office, HSBC Financial Services (Lebanon) SAL, HSBC Private banking (Luxembourg) SA, HSBC FinTech Services (Shanghai) Company Limited and The Hongkong and Shanghai Banking Corporation Limited and HSBC Mexico, S.A. Multiple Banking Institution HSBC Financial Group (collectively, the “Distributors”) to their respective clients. This document is for general circulation and information purposes only. This document is not prepared with any particular customers or purposes in mind and does not take into account any investment objectives, financial situation or personal circumstances or needs of any particular customer. HBAP has prepared this document based on publicly available information at the time of preparation from sources it believes to be reliable but it has not independently verified such information. The contents of this document are subject to change without notice. HBAP and the Distributors are not responsible for any loss, damage or other consequences of any kind that you may incur or suffer as a result of, arising from or relating to your use of or reliance on this document. HBAP and the Distributors give no guarantee, representation or warranty as to the accuracy, timeliness or completeness of this document. This document is not investment advice or recommendation nor is it intended to sell investments or services or solicit purchases or subscriptions for them. You should not use or rely on this document in making any investment decision. HBAP and the Distributors are not responsible for such use or reliance by you. You should consult your professional advisor in your jurisdiction if you have any questions regarding the contents of this document. You should not reproduce or further distribute the contents of this document to any person or entity, whether in whole or in part, for any purpose. This document may not be distributed to any jurisdiction where its distribution is unlawful.
The following statement is only applicable to HSBC Bank (Taiwan) Limited with regard to how the publication is distributed to its customers: HSBC Bank (Taiwan) Limited (“the Bank”) shall fulfill the fiduciary duty act as a reasonable person once in exercising offering/conducting ordinary care in offering trust services/business. However, the Bank disclaims any guaranty on the management or operation performance of the trust business.
The following statement is only applicable to by HSBC Bank Australia with regard to how the publication is distributed to its customers: This document is distributed by HSBC Bank Australia Limited ABN 48 006 434 162, AFSL/ACL 232595 (HBAU). HBAP has a Sydney Branch ARBN 117 925 970 AFSL 301737.The statements contained in this document are general in nature and do not constitute investment research or a recommendation, or a statement of opinion (financial product advice) to buy or sell investments. This document has not taken into account your personal objectives, financial situation and needs. Because of that, before acting on the document you should consider its appropriateness to you, with regard to your objectives, financial situation, and needs.
The following statement is only applicable to HSBC Mexico, S.A. Multiple Banking Institution HSBC Financial Group with regard to how the publication is distributed to its customers: This publication is distributed by Wealth Insights of HSBC México, and its objective is for informational purposes only and should not be interpreted as an offer or invitation to buy or sell any security related to financial instruments, investments or other financial product. This communication is not intended to contain an exhaustive description of the considerations that may be important in making a decision to make any change and/or modification to any product, and what is contained or reflected in this report does not constitute, and is not intended to constitute, nor should it be construed as advice, investment advice or a recommendation, offer or solicitation to buy or sell any service, product, security, merchandise, currency or any other asset.
Receiving parties should not consider this document as a substitute for their own judgment. The past performance of the securities or financial instruments mentioned herein is not necessarily indicative of future results. All information, as well as prices indicated, are subject to change without prior notice; Wealth Insights of HSBC Mexico is not obliged to update or keep it current or to give any notification in the event that the information presented here undergoes any update or change. The securities and investment products described herein may not be suitable for sale in all jurisdictions or may not be suitable for some categories of investors.
The information contained in this communication is derived from a variety of sources deemed reliable; however, its accuracy or completeness cannot be guaranteed. HSBC México will not be responsible for any loss or damage of any kind that may arise from transmission errors, inaccuracies, omissions, changes in market factors or conditions, or any other circumstance beyond the control of HSBC. Different HSBC legal entities may carry out distribution of Wealth Insights internationally in accordance with local regulatory requirements. HSBC specifically prohibits the redistribution of this material and is not responsible for any actions that third parties may take to and/or with it.
Mainland China
In mainland China, this document is distributed by HSBC Bank (China) Company Limited (“HBCN”) and HSBC FinTech Services (Shanghai) Company Limited to its customers for general reference only. This document is not, and is not intended to be, for the purpose of providing securities and futures investment advisory services or financial information services, or promoting or selling any wealth management product. This document provides all content and information solely on an "as-is/as-available" basis. You SHOULD consult your own professional adviser if you have any questions regarding this document
Important Information about the Hongkong and Shanghai Banking Corporation Limited, India (“HSBC India”)
HSBC India is a branch of The Hongkong and Shanghai Banking Corporation Limited. HSBC India is a distributor of mutual funds and referrer of investment products from third party entities registered and regulated in India. HSBC India does not distribute investment products to those persons who are either the citizens or residents of United States of America (USA), Canada, Australia or New Zealand or any other jurisdiction where such distribution would be contrary to law or regulation.
The material contained in this document is for general information purposes only and does not constitute investment research or advice or a recommendation to buy or sell investments. Some of the statements contained in this document may be considered forward looking statements which provide current expectations or forecasts of future events. Such forward looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially from those described in such forward-looking statements as a result of various factors. HSBC India does not undertake any obligation to update the forward-looking statements contained herein, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Investments are subject to market risk, read all investment related documents carefully.
Important information on ESG and sustainable investing
In broad terms “ESG and sustainable investing” products include investment approaches or instruments which consider environmental, social, governance and/or other sustainability factors to varying degrees. Certain instruments we classify as sustainable may be in the process of changing to deliver sustainability outcomes. There is no guarantee that ESG and Sustainable investing products will produce returns similar to those which don’t consider these factors. ESG and Sustainable investing products may diverge from traditional market benchmarks. In addition, there is no standard definition of, or measurement criteria for, ESG and Sustainable investing or the impact of ESG and Sustainable investing products. ESG and Sustainable investing and related impact measurement criteria are (a) highly subjective and (b) may vary significantly across and within sectors.
HSBC may rely on measurement criteria devised and reported by third party providers or issuers. HSBC does not always conduct its own specific due diligence in relation to measurement criteria. There is no guarantee: (a) that the nature of the ESG / sustainability impact or measurement criteria of an investment will be aligned with any particular investor’s sustainability goals; or (b) that the stated level or target level of ESG / sustainability impact will be achieved. ESG and Sustainable investing is an evolving area and new regulations are being developed which will affect how investments can be categorised or labelled. An investment which is considered to fulfil sustainable criteria today may not meet those criteria at some point in the future.
© Copyright 2024. The Hongkong and Shanghai Banking Corporation Limited, ALL RIGHTS RESERVED.
No part of this document or video may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of The Hongkong and Shanghai Banking Corporation Limited.