How to integrate biodiversity into your business?
Financial institutions are encouraged to join existing initiatives, such as UNEP FI Biodiversity and Ecosystem Services Workstream, Principles of Responsible Investment, and Equator Principles, and to address biodiversity in their investment strategies. Information on how to join these initiatives can be found on their websites.
The following recommendations were elaborated by UNEP FI for financial institutions to address biodiversity and ecosystem services in their investment strategies:
Actions for the financial sector as a whole:
- Clarify and make consistent lending and investment requirements;
- Clearly define and articulate the financial risks and opportunities associated with biodiversity and ecosystem services.
Actions for individual institutions:
- Review portfolio and business lines for current and future exposure to biodiversity/ecosystem services risks;
- Consider needs for policy/guidance to inform the institution’s investment and lending practices;
- Consider need for specific guidance and decision-making tools and training needs for relationship managers and transactors;
- Consider benefits of partnerships with civil society;
- Consider how best to maintain leverage in transactions;
- Report on biodiversity initiatives and impacts in sustainability and related reports.
There are also possibilities to develop new innovative financial instruments for financing biodiversity/ecosystem services (such as regional accounts, specially designed funds, etc.).