Other Effective Area-based Conservation Measures (OECMs) are sites where pre-existing management and governance is achieving long-term outcomes for biodiversity. These management and governance systems may have existed for a long time prior to the site being recognized as an OECM. Recognition of OECMs is increasing, driven by the adoption of Target 3 of the Kunming-Montreal Global Biodiversity Framework, which calls for the expansion of global networks of protected areas and OECMs to reach at least 30% of land, waters and seas conserved by 2030.

Increasing recognition of OECMs forms an emerging area that is important for investors to be aware of, particularly if assets within or near OECMs are negatively impacting biodiversity. The incorporation of OECM data into the Integrated Biodiversity Assessment Tool (IBAT) provides investors with a starting point for accessing these important data and a simple means of understanding and measuring the interfaces between their investments and OECMs. Expectations for investees should be clear: if any assets are situated within or near to an OECM, they must align with the management plan (or equivalent) for the area and not cause harm to biodiversity. This aligns with the approaches recommended for protected areas. In summary, investors should:

• Implement nature and biodiversity strategies to manage their biodiversity risks and incorporate investment policies that recognize the importance of OECMs on an equal footing to protected areas.
• Ensure that the potential risks of undermining biodiversity conservation (including within both protected areas and OECMs) are understood across their financial institution, particularly by decision-makers.
• Communicate to investees that assets within and near to OECMs must operate in alignment with the respective OECM’s management plan (or equivalent), recognizing that in most cases industrial-scale activities are not compatible with OECMs on land or in the ocean.
• Assess existing levels of risk regarding potential harm to OECMs within their investment portfolio and engage with investees to avoid, mitigate and manage these risks.
• Require investees to share asset location data with investors, assess their company's impacts on OECMs and disclose on these impacts.