In December 2025, Cephei participated in the PRI Hong Kong Nature Investment Forum, co‑hosted with partners including WWF Hong Kong and S&P Global's Sustainable1. The forum focused on nature‑related financial risks and opportunities, highlighting how biodiversity loss, ecosystem degradation and climate change are becoming systemic issues for investors, particularly in Asia.
The forum highlighted critical data underscoring nature's materiality to investors: approximately 55% of global GDP is moderately to highly dependent on ecosystem services, valued at around 44 trillion US dollars. In Asia‑Pacific, the dependency is even more pronounced, with 53% of gross value added (GVA) moderately to highly dependent on nature, and 58% of Asia‑Pacific stock exchange market capitalization moderately to highly dependent on nature. For China specifically, the WEF estimates 2.7 trillion US dollars in GDP is generated from nature‑dependent sectors, while Asia is home to 17 of 36 global biodiversity hotspots.
The event brought together asset owners, asset managers, policymakers and experts to discuss the state of nature globally and in Asia, emerging regulatory and disclosure frameworks such as the Kunming‑Montreal Global Biodiversity Framework, and practical tools such as the TNFD LEAP (Locate, Evaluate, Assess, Prepare) approach for integrating nature considerations into investment and stewardship. Cephei's participation underscores our commitment to understanding nature‑related risks and aligning our investment practices with evolving global standards on climate and biodiversity.
ESG has moved from a niche concept to a core pillar of corporate strategy and investment practice. Companies increasingly see robust ESG performance and transparent disclosure as prerequisites for maintaining stakeholder trust, while asset owners and asset managers use ESG to better understand long‑term risks, resilience and value creation.
At the same time, nature and biodiversity have rapidly risen up the agenda. Key drivers of nature loss—including changes in land and sea use, direct exploitation of organisms, climate change, pollution, and invasion of alien species—are creating cascading financial risks. The World Economic Forum's 2024–2025 Global Risks Perception Survey identifies biodiversity loss and ecosystem collapse as the second‑highest environmental risk over the next decade. Asia is warming twice as fast as the rest of the world, and climate and nature emergencies are no longer theoretical.
Nature‑related risks transmit to financial systems through physical risks (decline of ecosystem services, water scarcity, disrupted supply chains), transition risks (policy and regulatory shifts toward nature protection), and credit risks (collateral depreciation, increased defaults). A real‑world example: 75% of semiconductor manufacturing capacity and supplies of key materials are concentrated in Asia, relying heavily on ultra‑pure water. Water shortages in 2021 cost one major manufacturer approximately 500 million USD.
We believe integrating ESG and nature considerations is essential to prudent risk management and responsible capital allocation.
With over a decade of ESG experience, Cephei Capital has adopted a proactive and systematic approach to responsible investment, incorporating ESG and nature‑related factors into investment analysis and decision‑making processes. In December 2021, Cephei became a signatory to the UN‑supported Principles for Responsible Investment (UN PRI), demonstrating our commitment to global ESG standards and connecting us with an international network of responsible investors.
Cephei received strong results in its 2025 PRI Assessment, achieving 4‑star and 5‑star ratings across the three evaluated modules, reflecting the continued progress in our ESG integration and reporting practices.
Cephei Capital advances ESG and nature‑related practices through active engagement with portfolio companies, industry peers and policymakers. Our approach includes:
· Direct dialogue with portfolio companies to promote better ESG and biodiversity disclosure, risk management and target setting.
· Participation in forums such as the Hong Kong Nature Investment Forum to share insights and learn from global best practices.
· Contribution to policy consultations to support the development of effective ESG and nature‑related regulatory frameworks.
· Continuous ESG and nature‑related training for our investment teams to strengthen internal capabilities.
ESG and nature integration are evolving disciplines that require ongoing refinement as data, regulations and stakeholder expectations change. The Kunming‑Montreal Global Biodiversity Framework, adopted by 196 countries in 2022, is mobilizing private biodiversity finance and establishing monitoring KPIs for corporate disclosure and action. Key policy drivers include mandatory and voluntary ESG and nature disclosure standards (EU CSRD, ISSB, HKEX ESG guidelines), emerging biodiversity taxonomies and credit markets, and international guidance such as TNFD recommendations.
Cephei Capital is committed to supporting a more sophisticated ESG‑ and nature‑aware investment environment in China through sustained participation in initiatives led by organisations such as PRI and WWF, collaboration with non‑profit organisations, and constructive engagement with regulators. By combining rigorous research, active ownership and collaborative engagement, Cephei aims to contribute to sustainable finance practices that create long‑term value for investors, companies, communities and the environment.
As ESG continues to mature, and as nature‑related risks increasingly shape financial outcomes, investors have an unprecedented opportunity to influence real‑world outcomes while pursuing competitive long‑term returns. Cephei Capital remains committed to aligning fiduciary responsibility with broader environmental, social, and governance objectives, rooted in the belief that sustainable business practices and long‑term financial performance are fundamentally interconnected.
In December 2025, Cephei participated in the PRI Hong Kong Nature Investment Forum, co‑hosted with partners including WWF Hong Kong and S&P Global's Sustainable1. The forum focused on nature‑related financial risks and opportunities, highlighting how biodiversity loss, ecosystem degradation and climate change are becoming systemic issues for investors, particularly in Asia.
The forum highlighted critical data underscoring nature's materiality to investors: approximately 55% of global GDP is moderately to highly dependent on ecosystem services, valued at around 44 trillion US dollars. In Asia‑Pacific, the dependency is even more pronounced, with 53% of gross value added (GVA) moderately to highly dependent on nature, and 58% of Asia‑Pacific stock exchange market capitalization moderately to highly dependent on nature. For China specifically, the WEF estimates 2.7 trillion US dollars in GDP is generated from nature‑dependent sectors, while Asia is home to 17 of 36 global biodiversity hotspots.
The event brought together asset owners, asset managers, policymakers and experts to discuss the state of nature globally and in Asia, emerging regulatory and disclosure frameworks such as the Kunming‑Montreal Global Biodiversity Framework, and practical tools such as the TNFD LEAP (Locate, Evaluate, Assess, Prepare) approach for integrating nature considerations into investment and stewardship. Cephei's participation underscores our commitment to understanding nature‑related risks and aligning our investment practices with evolving global standards on climate and biodiversity.
ESG has moved from a niche concept to a core pillar of corporate strategy and investment practice. Companies increasingly see robust ESG performance and transparent disclosure as prerequisites for maintaining stakeholder trust, while asset owners and asset managers use ESG to better understand long‑term risks, resilience and value creation.
At the same time, nature and biodiversity have rapidly risen up the agenda. Key drivers of nature loss—including changes in land and sea use, direct exploitation of organisms, climate change, pollution, and invasion of alien species—are creating cascading financial risks. The World Economic Forum's 2024–2025 Global Risks Perception Survey identifies biodiversity loss and ecosystem collapse as the second‑highest environmental risk over the next decade. Asia is warming twice as fast as the rest of the world, and climate and nature emergencies are no longer theoretical.
Nature‑related risks transmit to financial systems through physical risks (decline of ecosystem services, water scarcity, disrupted supply chains), transition risks (policy and regulatory shifts toward nature protection), and credit risks (collateral depreciation, increased defaults). A real‑world example: 75% of semiconductor manufacturing capacity and supplies of key materials are concentrated in Asia, relying heavily on ultra‑pure water. Water shortages in 2021 cost one major manufacturer approximately 500 million USD.
We believe integrating ESG and nature considerations is essential to prudent risk management and responsible capital allocation.
With over a decade of ESG experience, Cephei Capital has adopted a proactive and systematic approach to responsible investment, incorporating ESG and nature‑related factors into investment analysis and decision‑making processes. In December 2021, Cephei became a signatory to the UN‑supported Principles for Responsible Investment (UN PRI), demonstrating our commitment to global ESG standards and connecting us with an international network of responsible investors.
Cephei received strong results in its 2025 PRI Assessment, achieving 4‑star and 5‑star ratings across the three evaluated modules, reflecting the continued progress in our ESG integration and reporting practices.
Cephei Capital advances ESG and nature‑related practices through active engagement with portfolio companies, industry peers and policymakers. Our approach includes:
· Direct dialogue with portfolio companies to promote better ESG and biodiversity disclosure, risk management and target setting.
· Participation in forums such as the Hong Kong Nature Investment Forum to share insights and learn from global best practices.
· Contribution to policy consultations to support the development of effective ESG and nature‑related regulatory frameworks.
· Continuous ESG and nature‑related training for our investment teams to strengthen internal capabilities.
ESG and nature integration are evolving disciplines that require ongoing refinement as data, regulations and stakeholder expectations change. The Kunming‑Montreal Global Biodiversity Framework, adopted by 196 countries in 2022, is mobilizing private biodiversity finance and establishing monitoring KPIs for corporate disclosure and action. Key policy drivers include mandatory and voluntary ESG and nature disclosure standards (EU CSRD, ISSB, HKEX ESG guidelines), emerging biodiversity taxonomies and credit markets, and international guidance such as TNFD recommendations.
Cephei Capital is committed to supporting a more sophisticated ESG‑ and nature‑aware investment environment in China through sustained participation in initiatives led by organisations such as PRI and WWF, collaboration with non‑profit organisations, and constructive engagement with regulators. By combining rigorous research, active ownership and collaborative engagement, Cephei aims to contribute to sustainable finance practices that create long‑term value for investors, companies, communities and the environment.
As ESG continues to mature, and as nature‑related risks increasingly shape financial outcomes, investors have an unprecedented opportunity to influence real‑world outcomes while pursuing competitive long‑term returns. Cephei Capital remains committed to aligning fiduciary responsibility with broader environmental, social, and governance objectives, rooted in the belief that sustainable business practices and long‑term financial performance are fundamentally interconnected.