What is the link between finance and biodiversity?
The financial sector is a strong enabling sector when it comes to integrating biodiversity profitably into business. It plays a key role when it comes to generating new financial arrangements to support innovative business models or integrate new risks in the assessment of investments. A series of initiatives have emerged in recent years in order to encourage financial institutions to integrate the risks and opportunities associated with biodiversity and natural capital into their investment decisions. Building on these early calls, financial institutions are looking for next steps on how to integrate biodiversity in their assessment and investment strategies.
What is the Platform doing about this?
The Finance workstream has identified and profiled biodiversity investment opportunities, but also funds and innovative financial instruments accelerating investment in biodiversity in the EU and worldwide.
Since 2016, the workstream is running the Community of Practice (CoP) on Finance@Biodiversity with 13 financial institutions engaged including Actiam, ASN Bank, AXA Investment Managers, CDC Biodiversité, Conservation Capital, Degroof Petercam, Ebanka, EIB, GLS Bank, Finance in Motion, FMO, Mirova and Piraeus Bank. Supporting platforms are CDSB, NCC, NCFA and VBDO.
As stated in its Mission Statement, the EU CoP F@B provides a “forum of dialogue between financial institutions (FIs) to share experiences, raise awareness and promote best practices at EU level on how to integrate biodiversity and natural capital into mainstream financial activities and foster investments in natural capital as a new asset class”.
It aims to accelerate the process of learning and support implementation both at strategic level and in practical experience, thereby supporting the transition towards a sustainable financial sector.
The 2018 results of the Finance workstream are summarised in this flyer. The work focused on three main topics:
- Common Ground in biodiversity footprint methodologies for the financial sector for policy makers, decision makers and environmental, social and governance (ESG) specialists in financial institutions; by CDC Biodiversité, ASN Bank, ACTIAM, supported by Finance in Motion
- Assessment of biodiversity metrics for policy makers, decision makers and developers; by EU B@B Platform Workstream Natural Capital Accounting Lead Arcadis
- Workshop on Biodiversity Metrics (18 September 2018, slides and minutes)
Positive Biodiversity Impact
- Brief ‘Positive Impact Finance for Business and Biodiversity’ about Opportunities and challenges on scaling projects and innovations for biodiversity by the financial sector
- Workshop on scaling Innovation (27 June 2018, slides and minutes)
Ambition & Responsibility
How will the work continue in 2019?
In 2019, the Finance workstream will continue to foster knowledge sharing and exchange of best practices through the CoP F@B with the aim to promote the integration of biodiversity into investment decisions. It will foster, in particular, peer-to-peer learning focusing on tools used to map biodiversity risks and opportunities in investments and finance, and methodologies to measure positive biodiversity impact. It will also focus on non-financial reporting on impact on natural capital / biodiversity, including key drivers of biodiversity loss.
21 March 2018 in Brussels (BE) hosted by the European Commission, "Ambition & Responsibility”
27 June 2018 in Brussels (BE), together with workstream Innovation, European Commission DG REGIO, "Finance and business co-creating Positive Biodiversity Impact”
18 September 2018, EIB, Brussels, "Biodiversity Accounting metrics and methodologies for finance and business"
29 November 2018 in Paris (FR), hosted by CDC, "Roadmap for Finance@Biodiversity"
You would like to share experiences and get engaged in this work?
Contact the Finance workstream leader, Anne-Marie Bor.