(Bloomberg) -- Firms making up more than half of Asia’s stock market value are vulnerable to deforestation, species loss and other nature-related risks, according to a new report, as governments ramp up regulations and industries continue to deplete the planet’s resources.

Some 58% of Asia-Pacific stock market capitalization comprises companies in sectors that are at least moderately dependent on the natural world’s status quo, the Asia Investor Group on Climate Change said in a preview of a report Wednesday. Exchanges in New Zealand, Taiwan and South Korea had some of the highest dependencies, the $35 trillion investor group found.

Investor awareness of nature risk has been growing since 2022, when almost 200 nations agreed at the COP15 biodiversity summit to protect 30% of the planet by 2030. Since then, leaders across industries have collaborated to develop guidelines for disclosures of the risk companies face from dwindling ecosystem resources.

Government regulations, such as a new EU law banning imports of raw materials produced on newly deforested land, have also contributed to increased investor attention, Monica Bae, director of investor practice at AIGCC, said in an interview.

Read more: How Europe Aims to Protect Rainforests Through Trade: QuickTake

Manulife Investment Management, which manages over $600 billion, said deforestation and biodiversity risks have caused it to reconsider investments for its fixed-income portfolio, including a palm oil firm and a food company. 

The risks “led to us adjusting our view of the fair value of the credit,” which led to investments in companies with better practices, said Eric Nietsch, head of sustainable investing in Asia for the Canadian insurer’s asset management arm.

As regulations evolve, “we’re looking for risks that are financially material to the company and thinking about how that would translate into credit or equity valuations,” Nietsch said. These include supply chain disruptions, loss of revenue, loss of license to operate, ratings downgrades, litigation and fines, according to the report.

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