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The TNFD Knowledge Bank features a curated collection of the latest external resources and market insights on nature-related risks and opportunities. Explore the Knowledge Bank to grow your understanding of why and how to integrate nature into decision making.
New content is added continuously. If you have suggestions for new or upcoming relevant content to include, we invite you to email us at [email protected].
An insight exploring the top takeaways on how nature was a standout topic at COP27 – including, for example, the calls on structural reform of finance for nature and climate, strong signs of political will on tackling deforestation, and the implementation of forest pledges.
EFRAG have released their draft sustainability reporting standards to the European Commission, which will be consulted by EU bodies and Member States before adoption in June 2023. Companies will have to begin applying them from 2024.
The annual Global Risks Report analysing the biggest risks to business and the global economy in 2021. It states that some of the probable risks in the next ten years are extreme weather, climate action failure, and social insecurity, all of which are expected to get worse.
A sixty-minute course exploring the business case for action on nature loss, helping participants understand the importance of biodiversity to their business and what existing pioneers are already taking action on.
“This is the 11th edition of the KPMG Survey of Sustainability Reporting; the first edition was published in 1993. This year, KPMG professionals reviewed sustainability reporting from 5,200 companies in 52 countries and jurisdictions, making this the most extensive survey in the series to date.”
An insight covering Mark Carney’s speech at COP15 at which he called for financial institutions to include nature in their transition plans, and for parties to the convention to mandate the alignment of financial flows with nature goals. The insight also covers other big nature-finance events that took place at COP15.
This report “uses readily available data to estimate the dependency of development banks’ balance sheets on vulnerable nature (‘dependency risk’), alongside the potential damage to nature from their lending activities (‘nature at risk’).”
(LSE & Grantham Research Institute on Climate Change and the Environment 2022)
A paper that discusses the need to extend the scope of central banks’ approach to the environmental crisis to include the drivers of biodiversity loss, how climate and biodiversity interact, and the transmission channels of nature-related risk.
Financial economist Ralph Chami explains the value of bringing the language of dollars and cents to conservation — and offers his vision of a new economy that would profit off regenerating nature, not extracting from it.
Draft guidance for consultation on actions to align strategies with the shared goal of a nature-positive planet by 2030. This has been developed by WBCSD and 60 leading companies and partners. The consultation closes on 31 January 2023.
Unilever’s interactive Google Earth platform highlighting how they are working on five key landscape initiatives to protect and restore nature in areas in which they work. The pdf report of this work can be accessed through the platform.
An insight from CDP showing that whilst the largest ever self-assessment survey shows that companies are ready and willing to report on biodiversity, however the majority of respondents are not willing or have not taken practical action.
Carbon Brief has conducted an wide-ranging assessment of priority issues for various parties attending the summit, presenting these in an interactive format which covers not only the priority issues but stances on major topics discussed at the convention as well as specifically contentious issues.
The State of Finance of Nature tracks global trends in public and private investment in nature-based solutions, aiming to improve data quality and identify opportunities for governments, businesses and financiers. This year’s report calls for investments in nature-based solutions to triple by 2030 and to increase four-fold by 2050 from the current level. While an increase in public funding would help plug some of the gap, there needs to be a significant increase in private sector investment in Nature-based solutions.
World Economic Forum, in collaboration with McKinsey & Company (May 2021)
Natural climate solutions (NCS) play a critical role in supporting the future of both climate and nature. Research conducted for this report confirms estimates that NCS can provide one-third (close to 7 Gt CO2) of the climate mitigation to reach a 1.5- or 2-degree pathway by 2030—and at a lower cost than other forms of carbon dioxide removal. Deployed in the right way, NCS can also produce high co-benefits that accrue to nature and to communities. Building off the recommendations from the Taskforce for Scaling Voluntary Carbon Markets, this report sets out five actions to accelerate the scale-up of high-quality NCS implementation and unlock markets through the combined efforts of business leaders, policymakers and civil society.
An op-ed exploring the structural challenges faced by negotiators and organisers of the COP15 conference, and why, despite this, the conference – and action on biodiversity and nature – is vitally important.
Tracking progress towards global targets for protected and conserved areas.
Protected Planet Reports are biennial landmark publications that assess the state of protected and conserved areas around the world. The 2020 edition provides the final report on the status of Aichi Biodiversity Target 11, and looks to the future as the world prepares to adopt a new post-2020 global biodiversity framework.
A new WWF report, ‘Bringing It Down To Earth: Nature Risk & Agriculture’, highlights how unsustainable production practices present systemic risks across our food and financial systems, and how shifting to more sustainable practices can unlock benefits for people and planet.
A new scientific study modelling coextinctions (the loss of species caused, directly or indirectly, by other extinctions) on a planetary scale. It shows that up to 34% more species would become extinct than previously predicted under the worst climate change predictions due to a lack of consideration of co-extinctions. Carnivores and omnivores would be most affected.
The Guidance on Biodiversity Target-setting is designed for Principles for Responsible Banking (PRB) signatories, allowing banks to take a systematic approach to setting and achieving biodiversity targets. The guidance presents four real-life case studies, and includes a detailed how-to guide and has been developed by UNEP FI and UNEP-WCMC based on discussions and input from the working group of 30 PRB signatories, with review and input by a number of experts.
The Economic Case for Nature is part of a series of papers by the World Bank that lays out the economic rationale for investing in nature and recognizes how economies rely on nature for services that are largely underpriced. This report presents a first-of-its-kind global integrated ecosystem-economy modelling exercise to assess economic policy responses to the global biodiversity crisis. Modeling the interaction between nature’s services and the global economy to 2030, the report points to a range and combination of policy scenarios available to reduce the impact of nature’s loss on economies. This modeling framework represents an important steppingstone towards ‘nature-smart’ decision-making, as it seeks to support policymakers who face complex tradeoffs involving the management of natural capital, and hence achieving growth that is resilient and inclusive.
This insight looks at seven reasons to be optimistic about the effort to conserve the world’s biodiversity, including the lack of coverage of restoration success stories and the increase in tools being developed to track plants and animals.
The Role of Natural Climate Solutions in Corporate Climate Commitments: A Brief for Investors is a first-of-its-kind engagement tool for investors to spur meaningful dialogue with companies on the role and use of natural climate solutions in delivering on those commitments. It provides clear guidance on how to facilitate engagements with portfolio companies and lays out expectations for climate disclosures—calling for transparency in critical steps along the way to net zero.
A new report from the Finance for Biodiversity Initiative (F4B) details why and how climate and nature impacts must be considered together, and not in isolation. The findings laid out in the report, The Climate-Nature Nexus: Implications for the financial sector assert that a future that deals with both the nature and biodiversity crises will be very different to one that deals with climate alone. The risks, solutions, and opportunities for the financial sector all change. But the majority of the financial sector has already started acting on climate, and can leverage this to make quick progress on nature.
A new report highlights the urgency for central banks and financial supervisors to act on the risk of unprecedented nature loss.
With biodiversity loss not only compounding climate-related risks but a global crisis in its own right, the report warns that current practices of only integrating climate-related risks and impacts in existing mandates of central banks and financial supervisors, and not including risks from nature loss, fall short in ensuring a sustainable financial system.
The ongoing degradation of nature, ecosystems and planetary biodiversity poses major economic and financial risks (Dasgupta, 2021; CBD, 2021). Businesses are embedded within the environment via their dependencies and impacts upon the resources provided by nature. Through their lending, advisory and investing activities, financial institutions are exposed to business dependencies and responsible for facilitating negative impacts by those firms. In the financial sphere, several voluntary initiatives aiming to incorporate biodiversity considerations into financial institution decision-making have emerged (Finance for Biodiversity, 2021). Central banks are also beginning to examine how to address the impacts of biodiversity loss on financial stability, building on previous research on climate change (NGFS 2021b).
Investors have an important role to play in addressing the twin crises of climate change and biodiversity loss, which are inextricably linked. The economic imperative to act is clear: More than 55 percent of global GDP is directly dependent on biodiversity and ecosystem services. Just as with climate change, investors should be highly motivated to mitigate biodiversity loss given the material impact nature-related risks are increasingly recognized as posing to investment portfolios.
Unlocking Nature-Smart Development: An Approach Paper on Biodiversity and Ecosystem Services is part of a series of papers by the World Bank Group that outlines the development challenges and opportunities associated with blue and green biodiversity and ecosystem services. The paper makes the case that the rapid global decline in nature is a development issue and proposes six global response areas intended to guide governments and inform broader discussions on how to integrate nature into development agendas. As countries formulate a set of new global biodiversity targets, this paper also offers insights that could inform the design and implementation of the post-2020 global biodiversity framework, as well as the World Bank Group’s ongoing support to this agenda.
A report estimating the social impact of the decline in pollinators. A decrease in insect populations means that there are fewer fruits and vegetables available, which are leading to the lower consumption of these foods, unhealthier diets, and deaths from preventable diseases.
Global finance can and must be reshaped to ensure a rapid, fair and safe transition of the current unsustainable food system, reveals future-looking analysis from Finance for Biodiversity (F4B) today.
The report – Making Finance Work for Food: Financing the Transition to a Sustainable Food System, prepared in collaboration with the Food System Economics Commission (FSEC) ahead of the UN Food Systems Summit on 23 September – explores how food and finance can be better aligned to deliver an inclusive, healthy, and environmentally sustainable food system.
The World Economic Forum’s annual Global Risks report shows biodiversity loss and ecosystem collapse as the fourth most pressing risk in the next decade, with nature-related events such as natural resource crises, failure to mitigate climate change, and large-scale environmental damage incidents being in the top ten in the next two years.
Swiss Re Institute demonstrates just how beneficial time spent in nature can be for physical and mental well-being. Increasing access and improving green areas in cities and suburbs can reduce health effects caused by air pollution, excessive noise and extreme heat – and should be a priority for health care and disease prevention, policy making, nature conservation and urban development.
A fact sheet introducing greenwashing – a key reputational risk – and six prevalent tactics used within it to mislead consumers and investors into thinking a company’s activities are more environmentally friendly than they are.
In this joint report, World Wildlife Fund (WWF) and Swiss Re Institute are collaborating to focus on the concept of spatial finance in understanding threats to World Heritage Sites (WHS). Spatial finance uses geospatial observational data – geographical information systems (GIS) – combined with machine learning to assess the risks and impact of financing and re/insurance decisions. Conclusions can be incorporated into sustainable financing and re/insurance frameworks.
The spatial finance approach can be used to assess both the long-term impacts of economic activity and short-term disaster risk management, such as oil spills.
A new free online tool which allows companies and financial institutions to explore and respond to their biodiversity-related risk to enhance their resilient. It operates at both the corporate level and the portfolio level.
Coral reefs are exceptional natural ecosystems. Not only do they provide direct and indirect employment for local communities, but they are key structures in local ecosystems, creating beaches and providing an important level of coastal protection against severe hurricanes and storms. The protection of reefs is of crucial importance for many coastal communities. In this article, the coral reef insurance mechanism that financially protects the coastal areas in the State of Quintana Roo, Mexico, is discussed. The authors explore why coral reefs are threatened and which ecosystem services they provide to humans, a crucial step in providing insurance coverage. Further, the authors show how technology has made insuring coral reefs a viable business proposition. Insurance can support conservation funding while it is a form of financial disaster risk management. Finally, the authors illuminate that the conditions bringing public and private sector actors together like in the case of Quintana Roo, Mexico, are not easily replicable; and more research and understanding will be needed to provide extensive coral reef coverage. Insurance manages residual disaster risk, but it is not a replacement for physical disaster risk management measures.
An insight about INSEAD (and partners’) new free app, which will provide uses with curated educational materials on nature for business to allow professionals to learn quickly and easily about key issues and how to respond to them.
The 2030 Agenda for Sustainable Development with its 17 Sustainable Development Goals (SDGs) charts a new path of balance for humanity and the planet. The highly interconnected SDGs will only be achieved in their entirety through transformative changes in our societies. Recent studies on the interactions between the SDGs identify the conservation of biodiversity as one of the most potent levers to achieve sustainability. The biodiversity-focused SDGs 14 (life below water) and 15 (life on land) emerge as multipliers of co-benefits across the goals. This factsheet aims to explain the importance of biodiversity for implementing all SDGs and to provide decision makers with options and entry points for transformative change.
This op-ed explores why 2023 could be an important year for investors looking at nature-related risks – in particular how ESG is becoming more politicised, and the signs of progress from governments around the world.
This report is the second output of the Joint NGFS-INSPIRE Study Group on Biodiversity and Financial Stability. The group was established to help central banks and financial supervisors fulfil their mandates in the face of financial risks stemming from biodiversity loss.
These risks are growing, as biodiversity is declining at unprecedented rates in human history, with growing evidence that this could have significant economic and financial implications. The decline of ecosystem services as a result of biodiversity loss poses physical risks for economic and financial actors that depend upon those services.
A tool to allow the assessment and comparison of measures mandated by central banks, financial supervisors, and other regulators for the fostering of sustainable finance in key countries across the world.
The Little Book of Investing in Nature provides an essential overview of the area of biodiversity finance at a time when governments and international negotiators are urgently seeking pragmatic solutions for the twin crises of climate change and the loss of nature.
This 7-page summary of The Little Book, as requested by several members of the Steering Group, provides a useful introduction to the topics covered. The summary is available here.
There is also a short video, It’s time to invest in nature, which highlights the urgent need to invest in protecting nature, drawing on the findings of The Little Book. The video is available in English on YouTube and versions with English and French subtitles are available.
The financial sector risks inflicting significant damage on itself and companies across the world if it fails to use its “great power” to stop actions that harm the planet, a new report by EY, Microsoft and Earth Knowledge has said.
As a core part of global economies, banks, investment firms and insurers have a “great responsibility” to ensure they support activities that are “nature positive” and protect the air, land, water and animals in the Earth’s unique and delicate ecosystems.
Entitled “Waking up to Nature – the biodiversity imperative in financial services”, the report estimates that the world’s largest investment banks provided $2.6 trillion of loans and underwriting services linked to the destruction of nature in 2019 alone, and a failure to act at pace and scale to rectify this will create a “material financial risk for the financial services industry”. This will manifest in “market, credit, reputational, regulatory, supply chain, operational, employee engagement and underwriting risk”, the report states.
This paper analyses the duties of governments in relation to nature and the supervision of public development banks (PDBs). It also appraises the powers available to government shareholders to direct PDB management: to improve risk management practices related to nature dependency; and, to reduce impact on nature.
Aviva Investors CEO Mark Versey lays out the investor’s three key stewardship priorities over the coming year – one of which is tackling nature loss, in which Mr Versey sets an expectation for companies to be reporting against the TNFD framework.
G20 Sustainable Finance Working Group (October 2021)
The G20, under Italy’s 2021 Presidency, has re-established and elevated the G20 Sustainable Finance Working Group (SFWG) with the goal of scaling up sustainable finance that supports the objectives of the 2030 Agenda and goals of the Paris Agreement. The SFWG has developed this G20 Sustainable Finance Roadmap (“the Roadmap”) in order to help focus the attention of the G20 members, relevant international organizations, networks, initiatives, and other stakeholders to key priorities of the sustainable finance agenda, and set out actions for the G20 to take to promote the achievement of those priorities over the coming years. The Roadmap is a multi-year document that will help inform the broader G20 agenda on climate and sustainability, future workplans of the SFWG, and other relevant international work.
This study marks a pioneering effort to explore and understand the global insurance sector’s dependence on nature, what nature-related risks could be, and whether and how nature-related risks are financially material to the sector’s underwriting and investing business.
TNFD Taskforce member S&P Global finds that natural capital accounting pricing measures could potentially encourage more forest-friendly farming practices and help tackle global deforestation, a major issue in the fight against climate change.
An issue of UN PRI’s Inevitable Policy Response covering nature, which looks at how government action on nature is increasing and a range of policies and regulations are being brought in alongside action on climate change.
To support the Taskforce on Nature-related Financial Disclosures (TNFD) with developing a robust framework for nature-related risks, Global Canopy and UNEP FI are testing TNFD core concepts and an exploratory disclosure framework with organisations operating or investing in soy supply chains.
The Finance Sector Roadmap is designed to provide a broad range of financial institutions, including asset owners, pension funds, asset managers, insurers and banks with guidance on eliminating deforestation, conversion, and associated human rights abuses from their portfolios, with a target date of 2025.
This report explores how Africa is highly exposed to climate and nature risks, and the severe economic impacts changes in climate are already having. It suggests five key approaches to greater mobilisation of finance for natural capital (and climate change) in the region to tackle this issue.
A supplement with articles exploring what TNFD means for investors, finding the investment case for action on biodiversity, shareholder engagement on biodiversity, the role of investors in reversing deforestation and measuring the biodiversity footprint of a portfolio.
An insight exploring what happens after the agreement of both the post-2020 Global Biodiversity Framework at COP15 and the new EU regulation, and what help there is available to financial institutions who want to explore and understand their nature-related risks.
TNFD’s third Piloting Clinic focuses on the assess phase of TNFD’s LEAP Approach, including risk and opportunity identification, existing and additional risk mitigation and management, and risk and opportunity measurement and materiality assessment. The speakers were Yoko Okonogi of Kirin Holdings, which published early LEAP-aligned disclosures in 2022, and Stephanie Hime of Little Blue Research, a consulting firm supporting a client through their piloting process.
Hear from TNFD’s Co-Chairs, Members, Secretariat, and guests from the UN Convention on Biological Diversity, and Business for Nature on the importance of the Kunming-Montreal Agreement and Target 15, in addition to how the TNFD Framework is being developed to operationalise Target 15, align metrics and targets to the GBF, and mobilise market participants through sector-specific guidance.
A blog post exploring the ways financial institutions can build a nature positive global economy, including putting nature in the centre of transition planning, funding nature conservation and restoration with private finance, requiring disclosure of nature-related risks and opportunities, and driving nature action through financial regulation and guidance.
The CDSB Framework application guidance for biodiversity-related disclosures (the Biodiversity Application Guidance) has been produced by CDSB to assist companies in the disclosure of the material information about the risks and opportunities that biodiversity presents to an organisation’s strategy, financial performance and condition within the mainstream report (biodiversity-related financial disclosure). It is designed to supplement the CDSB Framework for reporting environmental and climate change information to investors (CDSB Framework).
This insight considers what action must come next after COP15 and the agreement of the post-2020 Global Biodiversity Framework, and stresses the need for urgency to ensure the viability of all life on the planet.
An insight arguing that there are large areas of the African continent where little is known about the biodiversity, and that conservation cannot be effective without a solid understanding of what needs to be protected.
The guide sets out “building blocks” to guide business action towards nature-positive and net-zero. Building on existing frameworks, the building blocks help business understand the implications of the goal to achieve a nature-positive world by 2030.
An insight exploring the most up-to-date figures on the threat to the global economy from biodiversity loss, including the fact that more than a million species are now threatened with extinction, and as much as 40% of the Earth’s land surfaces are now considered degraded. The insight also looks at the five key transformations that can help conserve the natural world whilst also boosting GDP.
Analysing scientific literature, the report by UNEP and IUCN finds that nature-based solutions (NbS) can deliver emission reductions and removals of at least 5 gigatons of CO2 per year by 2030, and at least 10 gigatons by 2050 on a conservative basis. The report highlights that this contribution from nature, in addition to the rapid decarbonisation of the global economy, can play a significant role in reaching the Paris Agreement goal of limiting global warming to below 1.5°C. To fulfil this potential, NbS require additional funding and must be implemented according to strict standards.
The Nature Handbook for Business showcases how businesses across a range of sectors can approach becoming nature positive.
The Handbook provides sector-specific guidance for finance, agriculture, buildings & infrastructure, environmental services, fashion, food retail, renewable energy, tourism and water. It was developed by the Get Nature Positive campaign, launched by the UK-based Council for Sustainable Business, a group of business leaders appointed by the UK Government’s Department for Environment, Food and Rural Affairs(Defra). Defra has also provided substantial financial support to TNFD.
While the Get Nature Positive campaign is aimed at UK businesses, the Handbook has global relevance. For each sector, the Handbook sets out key challenges, actions businesses can take for #nature and case studies. 125 businesses have joined the campaign, including many TNFD Forum organisations, like Aviva, Barclays, EY, Fidelity International, GSK, HSBC, Lloyds Banking Group and Natura &Co.
A report exploring what Target 15 of the post-2020 Global Biodiversity Framework means for business. It highlights three key areas for action – compliance with monitoring, assessment, and disclosure requirements, provision of sustainability information, and reporting on compliance with access and benefit-sharing regulations and measures.
Could nature degradation prove a significant threat to corporate and financial stability? As climate change accelerates, oceans acidify, deforestation and soil erosion continue and species are lost, this important question is weighing on investors and financial regulators around the world.
If financial markets are to realign towards truly sustainable development the financial sector needs to differentiate commercial actors more accurately on their climate and environmental performance. A potential breakthrough to help in this challenge is the emerging field of ‘Spatial Finance’, the independent assessment of the location of a company’s or a country’s assets and infrastructure using ground data, remote sensing observations and modelled insights, offers a potentially transformative means to gain improved quantitative ESG insights. Rapid development is required if spatial finance is to deliver in the short term.
In this report, authors outline a possible taxonomy and hierarchy for spatial finance, showing how discrete forms of technology, approaches and data can be considered within a single consistent framework. Using this framework, spatial finance could provide insights at differing scales for different applications from the asset-scale for project finance, to company-scale for investment, to country scale for sovereign debt. Throughout the document authors provide insights into current cutting-edge developments within the field, illustrated with case studies from practitioners and data providers, and explore potential future developments.
A discussion paper – with feedback open until the 10 May 2023 – encouraging an industry-wide dialogue on sustainability-related governance, incentives, and competence to highlight the good practises whilst considering the potential for further regulatory measures in this area.
Cities are the engine of the global economy – contributing 80% of the world’s GDP – but their exponential growth in recent decades has come at the expense of nature. The built environment has grown by two-thirds in the first 12 years of the 21st century, leading to the degradation of local ecosystems and the loss of habitats. Urban areas are also responsible for over 75% of global carbon emissions, accelerating climate change which drives further nature loss.
Urban leaders around the world have the power and responsibility to transform cities and lead the way in tackling the interconnected biodiversity and climate crises.
This report provides a vision for cities of the future and the needed systemic shifts to develop BiodiverCities that place nature at the heart of decision-making and infrastructure investments. The report also sets out how public and private urban leaders can utilise nature to both reduce the impact of their cities on biodiversity, increase their climate resilience, and secure significant economic benefits.
A podcast exploring COP15 outcomes, disclosure, and how corporates and financial institutions are driving action for biodiversity preservation, including voices from HSBC, Walmart, and the Taskforce on Nature-related Financial Disclosures.
The launch of the ninth Forest 500 report by Global Canopy, showing that 201 (40%) of the companies and financial institutions with the most exposure to and influence on tropical deforestation still haven’t set one single policy on deforestation. Also see the link to the Forest 500 launch webinar too.
A list of key ESG trends for 2023 for the US market, including a note that biodiversity will likely become more important this year – importantly, BlackRock have signaled that reporting on nature-related issues is now included in their 2023 Voting Policies.
With biodiversity loss and ecosystem degradation occurring at a rate unparalleled, it has never been more urgent for society and the economy to adopt a nature-positive approach.
In 2021, WBA identified a need to expand WBA’s scope of the circular transformation to cover nature and biodiversity too, as a recognition of the need for greater understanding, transparency and accountability of business impact on our environment. The newly created nature and biodiversity transformation aims to examine how the impacts of companies contribute to stable and resilient ecosystems which enable humanity and nature to co-exist within planetary boundaries on biodiversity, climate, land, oceans and water.
WWF, World Bank Group and Global Canopy (January 2022)
An ongoing challenge with Environmental, Social, and Governance (ESG) efforts is access to robust data. In response, commercial data providers are continually developing solutions to improve insight. Here we discuss one of these potential improvements: the use of geospatial data within ESG focusing on the environmental (E) aspect. Geospatial data can, and is, being used for social (S), and governance (G) purposes, but these are beyond the scope of this paper. This paper explores and tests with real-world examples the potential of geospatial data approaches as means to provide additional insights into the environmental impacts of specific assets, companies, states or nations for sovereign debt investment.
In this interview, AIQ catches up with Tanzanian biodiversity leader and lawyer Elizabeth Maruma Mrema about the threat of biodiversity loss, the recent Kunming Declaration and missed Aichi Biodiversity Targets, as well as the role of finance in protecting nature.
The Working Group II contribution to the IPCC Sixth Assessment Report assesses the impacts of climate change, looking at ecosystems, biodiversity, and human communities at global and regional levels. It also reviews vulnerabilities and the capacities and limits of the natural world and human societies to adapt to climate change.
Eco-Business & Regional Project Energy Security and Climate Change Asia-Pacific of the KAS (February 2022)
Marine biodiversity is in a monumental crisis. Despite more attention to understand the impacts of anthropogenic-driven climate change on land and marine biodiversity in recent years, the effects of climate change and economic activity such as fishing are still poorly understood. Consequently, the steps needed to restore ocean health have not materialised.
This high-level report summarises the leading causes of declines in marine biodiversity in Asia-Pacific and offers six recommendations that could strengthen the protection of marine-life based on interviews conducted with stakeholders in marine conservation.
Where does a disaster- or climate-related risk end, and a nature-related risk start? Do they exist in a continuum, or should they be considered as distinct but interrelated? These questions are important for concerted action to combat the risks emanating from the natural world. Manleen Dugal, Martha McPherson, and Ria Sen write that international collaboration on a global reporting framework is underway. Without it, companies can’t justify prioritising nature-related risk, and policymakers will find it difficult to allocate budget to this unproven new area.
WBCSD undertook a baseline analysis with the aim of providing insights into how a subset of 55 members who are already active with respect to nature are currently performing related to the nature-positive “building blocks”. Real examples also serve to guide other businesses as they identify and take the next steps on their nature-positive journey.
‘We depend on nature for food and water, for our health, and also for our economic wellbeing. Every business at some level depends on resources drawn from nature, such as crops, fish, timber, fibre, or rare earth elements, or on the stability of ecosystems.
Often we only see this when those ecosystems are upset such as when over-extraction from natural water sources causes drought or unsustainable agricultural practices lead to soil degradation and ultimately to food shortages.’
UN Environment Programme, the World Economic Forum, and the Economics of Land Degradation Initiative (January 2022)
The State of Finance for Nature in the G20 report attempts to capture the complete amount and future need for G20 country spending on nature-based solutions assets and activities. It reveals that current G20 investments in nature-based solutions are insufficient, at USD 120 billion/year, and G20 Official Development Assistance and private sector investments are small when compared with domestic government spending.
Proposal for a Risks and Opportunities Disclosure Framework
The Paris Agreement states that addressing climate change will require “making finance flows consistent with a pathway towards low greenhouse gas emissions and climate resilient development.” Policy makers, scientists, and investors recognize that the global economy must evolve to a more sustainable model that reduces its impact on the Earth, adapts to the changes already locked in, and contributes to carbon sequestration, as well as restoring and reconnecting degraded and fragmented ecosystems. To be successful, global financial flows must align with these broad objectives. More specifically, trillions of dollars of financing is needed to achieve the climate change mitigation and adaptation goals laid out in Articles 2.1.a and 2.1.b of the Paris Agreement, as well as the emerging targets of the Post-2020 Global Biodiversity Framework (UNEP-CBD). Investors will play an important role in driving this alignment through the tools of capital allocation and engagement. Sustainability reporting can play a central role in driving capital to sustainable investments and away from environmentally harmful ones.’
New World Economic Forum report on scaling investments in nature sets out an action plan for the private sector that includes standardising disclosures, measurement & monitoring.
The report stresses the need to integrate new efforts for nature-related measurement and disclosure with existing climate and ESG frameworks, and highlights role of the TNFD, IFRS Foundation’s International Sustainability Standards Board (ISSB), the Science Based Targets Network and the The Integrity Council for the Voluntary Carbon Market in driving this agenda forward.
Ceres’ report provides critical guidance to help investors assess the integrity of corporate net-zero commitments and companies’ use of carbon credits to deliver on those commitments. It arms investors with cutting edge research and best-in-class practices that allow them to navigate the risks involved with commitments and make better, more informed investment decisions.
The Diving Deep Guidance helps you break the pollution cycle, including plastics and other solid waste, and manage the impacts of coastal infrastructure projects such as seawalls, while exploring the potential of nature-based solutions including mangroves and reefs. The guidance features inspirational images by world-renowned wildlife photographer and conservationist, Cristina Mittermeier, bringing to life the beauty and fragility of the marine ecosystem.
This webinar for TNFD Forum members introduced the first beta version of the TNFD framework, which is a prototype and the start of feedback and testing. The webinar gives an overview of the release package, some details on the structure and contents of the framework, and has two Q&A sections with some Forum members.
Speakers included TNFD Co-Chairs Elizabeth Mrema and David Craig; TNFD Taskforce Members Judson Berkey (Managing Director & Group Head, Engagement & Regulatory Strategy, UBS), Jessica McDougall (Director, BlackRock Investment Stewardship), Bas Ruter (Executive Director, Sustainability & Climate, Rabobank), and Emily McKenzie (TNFD Technical Director). The webinar was moderated by Tony Goldner, TNFD Executive Director.
TNFD and the City of London hosted an event on 22 March 2022 to present and discuss the TNFD beta version of the framework as well wider topics on nature-related risks and opportunities to key players in the nature and finance space, to include UK-based finance, corporate and government representatives to encourage early adoption and encourage institutions to test and develop the framework.
Learn more about the framework: https://framework.tnfd.global/
Opening remarks were held by The Rt. Hon. The Lord Mayor of the City of London, Alderman Vincent Keaveny, Lord Mayor, TNFD’s Co-Chair, David Craig and Economic Secretary John Glen MP, UK government.
TNFD’s Technical Director, Emily McKenzie presented on the beta version of the framework, followed by a panel of industry practitioners who discussed the importance of managing and disclosing on nature-related risk and how it could look like in practice.
Speaker panel, moderated by Axel Threllfall, Editor at Large, Reuters:
Emily McKenzie, Technical Director, TNFD
Abyd Karmali, Managing Director, Climate Finance, Bank of America and TNFD Taskforce Member
Cassandra Greeff, Chief of Staff to the CFO, GSK and TNFD Taskforce Member
European companies have an enormous environmental footprint extending far beyond Europe’s borders. Emissions created by companies’ value chains are about six times more than their “direct” operational emissions, and their supply chains reach deep into countries with high rates of deforestation and water stress.
How are European companies and financial institutions managing these impacts, and driving progress towards a net-zero, nature-positive economy?
This report finds that while European companies are driving global progress on science-based targets (SBTs), they are often failing to act on their wider environmental impacts.
Major financial institutions and multinational corporates have endorsed the launch of a new market-led Taskforce on Nature-related Financial Disclosures (TNFD), which will support business in assessing emerging nature-related risks and opportunities.
TNFD Co-Chairs, David Craig and Elizabeth Maruma Mrema, outline the plans and goals of the TNFD.
For the official virtual launch event of the Taskforce on Nature-related Financial Disclosures (TNFD), 10 June 2021, the new Co-Chairs shared their vision for the Taskforce. An influential panel of market leaders also spoke at the event: AXA’s Ulrike Decoene, BlackRock’s Michelle Edkins, WWF’s Pavan Sukhdev, WBCSD’s Sunny Verghese, International Institute of Green Finance’s Yao Wang, and Grupo Financiero Banorte’s Mariuz Calvet, who was Co-Chair of the Informal Working Group bringing together TNFD. Moderated by Lana Wong.
The webinar will include presentations from the authors of ‘A “Silent Spring” for the Financial System?’ by the Banque de France and ‘Indebted to Nature’ by De Nederlandsche Bank. These will be followed by an open Q&A moderated by TNFD Technical Director, Emily McKenzie. The discussion will centre around the learnings from these ground-breaking reports, and what the results mean for policy and action moving forward.
This paper sets out challenges and opportunities associated with the surge in monetarisation of nature across the global economy. It has been prepared as the anchor ‘white paper’ to set the scene and inform the work of the Taskforce on Nature Markets.
NGFS-INSPIRE Study Group on Biodiversity and Financial Stability (March 2022)
This is the final report from the Joint NGFS-INSPIRE Study Group on Biodiversity and Financial Stability, which was established to help central banks and financial supervisors fulfil their mandates of price and financial stability in the face of financial risks stemming from biodiversity loss, or ‘biodiversity-related risk’. The report is designed to help central banks and financial supervisors understand the issues in the context of existing science, theory, policy and practice, and to recommend steps that could begin to address biodiversity-related risks in financial systems.
World Bank Group and Bank Negara Malaysia (March 2022)
Malaysia is one of the world’s megadiverse countries, and many of its economic activities are directly or indirectly dependent on nature and its associated ecosystem services. The COVID-19 pandemic, with its far-reaching economic impacts, is a reminder of the link between human health and planetary health, given that most human infectious diseases are transmitted between species (Taylor et al. 2001). Ecosystem services are broadly defined as the benefits that people obtain from ecosystems and include regulating services (such as regulation of droughts, floods, and land degradation), provisioning services (such as crops, fresh water, aquaculture, and timber), supporting services (such as photosynthesis, nutrient cycle, and water cycle), and cultural services (such as recreational and other non-material benefits). A recent World Bank (WB) study found that, in a worst-case scenario of partial ecosystem collapse, Malaysia could experience a 6 percent gross domestic product (GDP) annual loss by 2030 compared to a baseline scenario (Johnson et al. 2021). In Malaysia, the losses would be driven by a decline in export demand and adverse impacts of the partial collapse of forestry and fishery ecosystem services.
With biodiversity loss identified as one of the top three risks to business, it is quickly becoming a key topic in boardrooms around the globe. Human pressure on natural environments and ecosystems has accelerated species loss to a rate at least 100 times higher than the natural extinction rate. This unprecedented decrease in biodiversity due to human activity has both direct and indirect social and economic impacts, as over half of the world’s GDP – approximately $44 trillion – is at moderate or severe risk. Unless further biodiversity loss is prevented and biodiversity-related impacts are better managed, many business activities will soon be unsustainable.
This ebook outlines the steps companies can take to measure and manage biodiversity-related issues. Readers will discover:
How current business activity is accelerating biodiversity loss
The material impacts biodiversity loss has on businesses across sectors
How companies can protect against natural capital losses and address potential biodiversity-related risks.
University of Cambridge Institute for Sustainability Leadership (April 2022)
Since 2019, CISL has been collaborating with financial institutions on a programme to support the integration of nature into financial systems, creating resources for practitioners and senior management.
CISL’s latest publication, Integrating Nature: The case for action on nature-related financial risks, CISL, 2022, brings together the outcomes of that programme, providing senior management with the business case for integrating nature-related risks into financial decisions by detailing:
Why action is need
How action can be taken
Use cases assessing nature-related financial risks
What is now needed to accelerate the integration of nature into finance
WWF-NL and Deloitte Netherlands researched how the Dutch financial sector is integrating nature-related risks. Based on a survey, several interviews and a roundtable discussion with Dutch banks and asset managers, the progress in the Dutch financial sector was assessed and several use cases were identified.
The findings show that the Dutch financial sector is acknowledging and recognising the importance of its interaction with nature. Multiple initiatives, commitments and publications are already available in the Dutch context, suggesting that Dutch financial institutions could lead in acting upon the interaction of the financial sector with nature. Several key nature-related risks, relevant portfolios and sectors have been identified and first actions taken; examples include creating heatmaps to measure exposure to nature-related risks, integrating nature into organisational governance, making nature part of the strategy and defining qualitative targets. However, a full overview of material risks and adequate responses at the organisational or industry level is still lacking. Additional action is needed to be able to comprehensively assess, monitor and disclose these risks.
There is an urgent need for the finance sector to account for nature-related risks in decisions, building on progress in assessing and managing climate-related risks. This can help ensure portfolios are resilient to changes in the state of nature, thereby potentially reducing their volatility. “Nature-related risks” are the risks to an organisation from links between its activities and nature. This includes shorter-term financial risks as well as longer-term risks stemming from an organisation’s impacts and dependencies on nature. While challenges remain in accessing ideal data, there are already relevant resources for financial institutions to use, including data currently used for assessments of climate risk. This investor guide presents steps that financial institutions can follow to use existing tools and datasets to screen investments for exposure to nature-related risks.
10 things boards and executives should know about nature-related risks and opportunities.
The pressure on our natural environment has increased substantially overtime. Halting and preserving nature and its capacity to contribute to sustainable economic growth is a significant challenge, bringing with it significant risks to corporate and financial stability, but also opportunities. All businesses depend on nature and its services either directly or through their supply chains, and those businesses that are highly reliant on nature are considered ‘most at risk’ from the consequences of nature degradation and biodiversity loss.
This report covers the significance of the water crisis to the financial sector and how water risk is becoming a potential threat to financial stability. It examines the drivers of water risks – physical, regulatory, reputational, technological – and assesses the level of awareness and preparedness that exists across companies in four major sectors: coal, electric utilities, metals and mining, oil and gas, with a case study for each. The wider data is drawn from CDP’s database of corporate disclosures on water. Using all of this evidence, the research evaluates how the issue of water scarcity and water stress can affect the financial performance of companies in these chosen sectors, in addition to the financial institutions backing them. The report finally proposes a list of actions and mitigations that can be put in place to relieve some of this risk.
The European Commission has instigated the drafting of a set of EU Sustainability Reporting Standards (ESRS) as part of the Corporate Sustainability Reporting Directive. The drafts have now been released for public consultation, with feedback due by the 8 August 2022. The standards cover all aspects of sustainability and include work on biodiversity and ecosystems, water and marine resources, and, more generally materiality assessment disclosure requirements.
This insight covers the release of the International Sustainability Standards Board (ISSB)’s first two proposed standards for market consultation. One covers general sustainability-related disclosure requirements, and the other looks at climate-related disclosure requirements. While neither proposed ISSB standard covers nature-related disclosures explicitly, the proposed general sustainability-related disclosure requirements demand that organisations ‘disclose material information about all of the significant sustainability-related risks and opportunities to which it is exposed.’
This insight targeted at a Chinese audience gives an overview of TNFD’s progress to date and the wider context in which it sits, highlighting the importance of nature-related financial disclosure to taking action on the destruction of nature. It also covers the opportunities TNFD provides to China, including as a reference for domestic environmental information disclosure and even to expand the scope of those domestic disclosures beyond their current limits.
This is a press release from the G7 Foreign Ministers which recognises the impacts of the climate and biodiversity crises and understands that these issues are borderless and impact on peace and security.
With a full release scheduled for summer 2022, the Ocean Hub have put together some information on their upcoming Ocean Data Platform. This will be a key source of open-source data for the ocean, aggregating existing datasets and adding new ones.
This tool is an integrated global map of biodiversity, carbon storage, and other nature services. It aggregates many layers of spatial nature data, including several new ones – eg. plant taxa, hydrological services. It is also working to crowd-source new data sets, on, for example, forest management. At present, the coalition behind this tool are focused on supporting interested countries in strengthening their national mapping and land-use planning frameworks for biodiversity and carbon.
This report has come out of a corporate sector market readiness assessment on their path to deliver nature-related risk management. It aims to create a clear understanding of what level of understanding and implementations corporates are as regards nature-related risks and their expectations towards the TNFD. It was based on interviews with 19 companies who are both inside and outside the TNFD Alliance.
The World Benchmarking Alliance is measuring and tracking how well companies are performing with regards to their impact on ecosystems – and, additionally, if they are taking positive steps to restore ecosystems. 1000 companies will be measured across 22 industries between 2022 and 2023, and the first benchmark itself will be launched in December 2022.
TNFD Co-Chair Elizabeth Mrema gives an overview of the Global Biodiversity Framework currently being negotiated by the Convention on Biological Diversity (CBD), and outlines the important role finance and financial regulators will play. She highlights the close interlinkages between the Global Biodiversity Framework and the TNFD, and how they will support each other.
An introduction to, and the reason for, the review and update of GRI 304: Biodiversity 2016, the Global Reporting Initiative’s standard on biodiversity to reflect global best practise for biodiversity reporting. The article also highlights the importance of joined-up reporting, and how GRI is working with other organisations in this space to ensure that their work is all aligned.
This report used geospatial analysis techniques to identify the areas where nature has a particularly high value, and looks at what the benefits and costs that might result from the conservation of these areas. It then highlights the benefits, which are cultural, economic, climatic, and would improve human health. Finally, it considers what taking action looks like, and proposes questions to the different groups of stakeholders involved in this arena.
A podcast featuring TNFD’s Technical Director, Emily McKenzie, which gives an overview of the TNFD framework, along with perspectives from Matthieu Maurin, CEO and Co-Founder of Iceberg Data Lab, and Philippe Zaouati, CEO of Mirova.
A report which digs into how industry practises are threatening global freshwater systems in five main ways – groundwater depletion, metal contamination, plastic pollution, water diversion and transfer, and eutrophication. As well as the impacts industry is having on nature, the report lays out what the long-term exposure is for different industry sectors in the face of increasing water risks. It focuses on both the local and specific, as well as the global and systemic – as well as what institutional investors can do in engaging with companies in these sectors to deal with this problem.
This insight uses geospatial analysis and data about asset location to assess which organisations in the MSCI ACWI Index had physical assets in biodiversity-sensitive areas, as well as the biodiversity risk management procedures of the organisations.
This piece highlights the importance of including a focus on land degradation within the discussions on climate change and biodiversity loss, as restoring this is a vital step towards a more nature and climate positive future. It also shows that the movement of money from harmful subsidies to restoring degraded land could be a big driver of change.
An update on the meetings of the Convention on Biological Diversity (CBD) at Geneva this spring, and presence of many large businesses at the talks. It also analyses how the CBD talks went, and outlines what actions businesses can take in the meantime.
This report looks at what the insurance sector can do to support the financial need to protect biodiversity, highlighting key opportunities and challenges for insurance-based solutions to the nature crisis.
Watch TNFD’s April Forum webinar on nature-related risk in practise, which puts into conversation F4B’s Integrated Transition Framework on the climate-nature nexus, and a series of use-cases produced by CISL in collaboration with financial market organisations. The speakers were Dr Simon Zadek (F4B), Dr Nina Seega (CISL), Matteo Oriani (HSBC), and Stephen Verheul (Robeco). The webinar was moderated by Snorre Gjerde, the Taskforce Member from NBIM.
Watch TNFD’s May Forum webinar on spatial data innovations within spatial finance, which highlights some of the cutting edge work underway to produce useable and useful data platforms for monitoring natural capital and nature-related risk. The speakers were Dr Mary Ruckelshaus (Stanford Natural Capital Project), Martin Moen (HUB Ocean), Christophe Christiaen (Spatial Finance Initiative), and Dr Florian Gallo (LSEG). The webinar was moderated by TNFD Co-Chair, David Craig.
WWF, Storebrand Asset Management, Grieg Seafood, Norwegian Institute of Nature Research (May 2022)
The joint authors of this report looked at how currently-available information on salmon aquaculture can be used to inform seafood-sector investors about their key nature-related risks – for example, impact on biodiversity or water quality. The analysis also highlighted key areas in which the space needs to improve – for example, the need for comparable qualitative metrics, definitions, and a framework for an objective reporting on dependencies. The authors also pointed out that the methodology used could be scaled up to look at global aquaculture across all species.
The announcement of the 2022-2024 workplan of the Network for Greening the Financial System (NGFS) which includes four new working groups and two new taskforces. The network also welcomes a number of new participants from across the world.
A series of lessons on the most effective ways for corporates to fund nature conservation projects – from place-based solutions to community engagement – in order to tackle the nature-funding gap which sees more money being put into subsidies which are harmful to nature than funding nature conservation.
A panel featuring Dr Danielle Wood of the MIT Media Lab and Dr Josh Tewkesbury of the Smithsonian Institute on the basics of biodiversity, biodiversity loss, the value of measuring biodiversity, and how the private sector can tackle it.
A briefing paper on the devastating effects of deep-sea mining for the finance community. UNEP-FI states that “in their current form, there is no foreseeable way in which the financing of deep-sea mining activities can be viewed as consistent with the Sustainable Blue Economy Finance Principles”. The paper addresses the reputational, regulatory, and operational risks associated with deep-sea mining and how the financial sector should respond.
The Coalition of Finance Ministers for Climate Action (June 2022)
This report covers the key findings and policy recommendations on nature-related risk for Ministries of Finance. The findings include:
The materialization of nature-related risks for the economy and financial sector can have detrimental implications for governments, and MoFs in particular.
Nature-related risks are not inevitable, but can be reduced by altering the economy and the financial sector’s impact on nature, where MoFs have a pivotal role.
Climate change and nature loss are deeply interconnected and mutually reinforcing.
A government-led nature- or climate-only approach is likely to be fiscally inefficient, socially, and environmentally ineffective, and not sufficient to reach national or global climate and nature-related targets.
The report includes recommendations for a range of policy actions MoFs can take to start to bend the curve of nature loss in the following areas:
Reforming economic policy
Integrating nature-smart planning and nature-based solutions into sectors
Developing and implementing valuation, metrics, and decision support tools
Mobilizing private finance for nature (both through greening finance and financing green).
An insight from TNFD Co-Chair David Craig and TNFD Member Dan O’Brien on the challenges presented by spatial data and the innovations being developed to solve them. It also introduces the TNFD Data Catalyst.
In November 2021 the world’s largest debt refinancing for ocean conservation was completed by the Government of Belize. It reduced Belize’s debt by 12 percent of GDP, created long-lasting sustainable financing for conversation, and committed to protecting 30% of Belize’s ocean. This case study outlines the process.
An insight introducing Google’s new platform Dynamic World (in collaboration with the World Resources Institute), which provides global, near real-time land cover data at a ten-meter resolution. This gives an enormous amount of detail of land use and land uses changes, which will be a key asset in monitoring and evaluating land and ecosystems.
This report from the Academy of Sciences Malaysia outlines on the economic value of South East Asia’s biodiversity – which is at least US$2.19 trillion per year – and highlights that the figure can rise if nations work put effective conservation measures in place.
An in-depth newsletter which covers all aspects of biodiversity and natural capital as it relates to the global financial system, including but not limited to a section on TNFD, biodiversity hotspots, systemic risk, the EU Taxonomy, sector-specific issues, and how to harness nature-positive activities.
This report goes through the process BNP Paribas Asset Management and their team took to do a biodiversity footprint of their portfolio. The stated objective of the paper is, “to test biodiversity footprinting on the corporate holdings in our global portfolios in order to understand what it looks like, what it can be used for, and to identify the principal improvements that need to be made to the tool.”
This insight announces the launch of a piece of work developing a typology of risks to increase investment in indigenous and community-led landscapes. It highlights that community-managed landscapes are often the most effective protectors of biodiversity, however there is a lack of language around the risks associated with their activities – leading to a lack of investment. The typology seeks to rectify this and calls for responses to their survey by 6 September 2022.
A podcast episode featuring a conversation between Deborah Lehr (Executive Director of the Paulson Institute) and David Craig (TNFD Co-Chair). They speak about biodiversity loss, the role of data in addressing the biodiversity and climate crises, and the important of the TNFD’s framework.
An assessment of nature-related risks and opportunities building on the TNFD’s LEAP approach and the stress-testing work of DNB and the Banque de France, focused on several leading commercial financial institutions in Africa.
The Bank of England’s Financial Policy Committee has indicated that the Bank needs to increase its understanding of how nature risks might arise and their potential materiality for the UK’s financial system. In addition, the Norwegian Government has started a Nature Risk Committee to investigate the level of dependency society and the economy have on nature.
This report, approved by the 139 member States of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES), shows that there is still a dominant worldwide focus on short-term profits and economic growth which excludes the multiple values of nature. The review is cross-disciplinary and based on a large volume of research, with four general perspectives to aid in policy and decision-making.
A press release outlining BBVA’s new sustainable loan, which has been created with Iberdola. The loan focusses on reducing water footprint, which is a key priority in many companies’ sustainability policies, and can be structured as a bilateral or syndicated loan.
A report considering the implications of valuing nature differently, aiming to explore how “the growing ecological deficit can be addressed by mobilising investment into the conservation, sustainable management and restoration of natural capital assets.”
A panel discussion featuring Laura Bosch Ferreté, Sustainable Investing Specialist, Robeco; Kelvin Chiu, Founder & Principal, Silverstrand Capital; and Anderson Tanoto, Managing Director, RGE, discussing best practices for addressing biodiversity loss through investment strategies.
A white paper from UBS’s sustainability experts exploring what needs to happen to preserve and regenerate the earth’s rapidly-depleted stock of natural capital. It includes discussion of policy innovations, the implementation of reporting frameworks, and the role of investors and the private sector.
An insight explaining everything about the upcoming CBD COP15 conference – what it is, what the history of international diplomacy on nature is, what the plan is, and expected sticking points in the negotiations.
A report outlining the biodiversity crisis and the financial sector’s role in it, which also highlights key thinking on how to become more nature positive – including stop direct harm, fostering direct solutions, and addressing the underlying causes of biodiversity loss.
A news piece about MSCI’s new research, which highlights that two in five (39%) constituents of MSCI’s flagship global equity index have at least one asset located in an area sensitive to biodiversity loss.
An insight into Colombia’s newly-announced sustainable finance taxonomy, which will focus on five key areas – the existing green taxonomy; financial innovation; data, metrics, and information; the integration of ESG issues; and tools for measuring and supervising climate and nature risks.
LSE & Grantham Research Institute on Climate Change and the Environment (August 2022)
A policy paper exploring a “just nature transition” and how the financial sector can support positive outcomes for such a just transition – looking at agriculture, food systems, deforestation, nature-based solutions, and restoring ocean ecosystems.
Verdani Institute for the Built Environment (August 2022)
A comprehensive guide to ESG reporting frameworks. It features an introduction to ESG, and overviews of 41 frameworks, regulations, aggregators, and initiatives, which are classified by the following: standards and guidance frameworks, voluntary disclosure frameworks, involuntary third-party aggregators, net zero emissions initiatives, and regulations.
A global training programme to support the banking community understand how deforestation-risk commodities in their investment portfolios contribute to their overall risk exposure and how to mitigate this exposure through investment in Nature Based Solutions. The training course is made up of four modules.
This insight covers a key point made at New York Climate Week that investors need to remove deforestation in their supply chains. It is supported by new research from the UN-backed Race to Zero campaign that highlights how ignored the land transition still is for many investors.
A new report from the Taskforce on Nature Markets maps a detailed taxonomy and economic sizing of nature markets, i.e. those markets that explicitly value and trade nature including voluntary carbon credits, conservation, soft commodities and nature-based solutions for carbon sequestration.
This report gives an overview of the concept of nature risk and assesses its applicability to Nordic countries. It find that nature risk is applicable, and recommends that Nordic countries take it into account in key policies, regulations, and sectors, aligning with the EU Taxonomy and the TNFD Framework.
New commitments for a more nature-positive world were revealed at a high-level side event to the United Nations General Assembly including new funding from the German Government, an accelerator for action on biodiversity from the Colombian Government, and a 10-point plan for financing biodiversity, initially endorsed by 16 countries.
A briefing paper on the importance of location for nature and climate, and how spatial intelligence is vital to the net-zero, nature-positive transition. It covers the need for spatial intelligence on nature, the potential for spatial intelligence on nature, and action points for both businesses and governments.
Cambridge Institute of Sustainability Leadership (September 2022)
According to recent research, over half of insurers and re-insurers believe that nature-related risk is material to their underwriting business, however nature risk is not being assessed by underwriters. This report provides a framework for insurers and reinsurers to assess nature risk in their underwriting activities.
According to recent research, over half of insurers and re-insurers believe that nature-related risk is material to their underwriting business, however nature risk is not being assessed by underwriters. This report provides a framework for insurers and reinsurers to assess nature risk in their underwriting activities.
This report presents the results of a study in five countries (Costa Rica, India, Indonesia, Mexico, Zambia) as to the readiness of their policy and regulatory environments to legislate and regulate on nature-related risk and the preparedness of institutions to make nature-related disclosures.
NUS Centre for Nature-Based Climate Solutions (September 2022)
This insight introduces and explains nature-based climate solutions and nature-based carbon credits, and introduces the new interactive dashboard NUS has built can estimate how much carbon a given area can sequester and what return on investment that will provide.
This insight introduces and explains nature-based climate solutions and nature-based carbon credits, and introduces the new interactive dashboard NUS has built can estimate how much carbon a given area can sequester and what return on investment that will provide.
“Embracing Nature provides an overview of nature-related risks and opportunities, highlights how these are already material to businesses, discusses recent market and regulatory developments, and describes key concepts, tools, and frameworks used for assessment and reporting.”
A keynote speech by Frank Elderson, who sits on the Executive Board of the ECB on “moving beyond climate: integrating biodiversity into financial markets” which covers nature-related risks and how the ECB – and the banks it supervises – are beginning to assess and consider them.
Moody’s Investor Service has announced that almost $1.9 trillion is at risk as biodiversity loss escalates nature-related risks. It shows that nine sectors contribute to this $1.9 trillion which have high or very high exposure to natural capital, a decline in which could lead to very material financial implications for these companies.
This insight looks at the growth in opportunities for scaling credible net-zero and nature-positive investment – for example, the rehabilitation of degraded farmland which would reduce the amount of land conversion needed for agriculture, in addition to how private finance, governments, and central banks can create the conditions necessary for this to happen.
Cambridge Institute for Sustainability Leadership (March 2021)
This handbook joins up the financial and natural worlds through a risk perspective explaining key terms and concepts, and contains a framework to allow financial analysts to work out their exposure to nature-related risk.
Planet Tracker’s report on the traceability of seafood shows that only 29% of it is traceability-ready – in that it is harvested acceptably enough for the harvester to be associated with the catch, and that it is harvested in an area where a traceability initiative can be relatively easily implemented. It also explores the financial benefit of investing in traceable seafood supply chains.
A podcast episode starting Financing Nature’s COP27 special series. Hosts Helen Avery and Jessica Smith speak to Champions Finance Lead Sagarika Chatterjee about the work of the Glasgow Financial Alliance for Net Zero (GFANZ) and Jose Pugas, the head of responsible investments and engagement at JHP Asset Management in Brazil about the work of the Innovative Financie for the Amazon, Cerrado, and Chaco (IFACC).
Cambridge institute of Sustainability Leadership (September 2022)
A report arguing for the integration of climate and nature considerations by financial institutions considering the issues such as materiality, unintended consequences, compounding effects, potential synergies and macroprudential risks.
A new report on Global Canopy’s Deforestation Action Tracker, which monitors 557 financial institutions with important climate commitments (including those in Race to Zero and the Glasgow Financial Alliance for Net Zero (GFANZ)) and tracks how much action they have taken on deforestation and the human rights abuses that come with it.
A report giving an update on the ways business and finance can contribute to nature positive activities. It defines what nature-positive is, outlines why it is important for business and finance, and gives recommendations for credible contributions business and finance can make.
This guide by the IFC outlines an “indicative list of investment projects, activities, and components that help protect, maintain, or enhance biodiversity and ecosystem services, as well as promote the sustainable management of natural resources.” It is aimed at investors to help identify what is eligible to be classed as biodiversity finance.
A news article on the Bankrolling Extinction report which shows the flows of finance to sectors with high impacts on nature, and how the banks have little understanding to or indifference of the implications.
An in-depth report considering how governments are using land for carbon removal in their climate pledges, and what the implications are for land use in each of these scenarios. The report shows that “countries should seek to reduce their expected reliance on land-based carbon removal and must instead make much deeper cuts in emissions.”
This paper argues that governments and regulators – supported by private finance – are the key to mobilizing private finance at scale for the protection of nature and reduction of poverty. It looks at two approaches – financing green, and directing funding towards activities which benefit the environment, and greening financing, directing existing financial flows away from activities which are harming the environment.
This speech by Sylvie Goulard, the Deputy Governor of the Banque de France, opened the conference on the frontiers of climate and nature in macroeconomics and finance. It covers what science says about the current state of the biosphere, what this means for central bankers and supervisors, and what might be required to address the situation.
This is a webinar on what the financial sector can expect from this “Paris moment for nature” at COP15 in December 2022. The speakers are Elizabeth Mrema (the Executive Secretary of the CBD), Eric Usher (Head of UNEP FI), Suresh Weerasinghe (Head of Leveling Up & Investments at Aviva), Elias Albagli (Director of the Monetary Policy Division, Central Bank of Chile), and Emine Isciel (Head of Climate and Biodiversity, Storebrand Asset Management).
Moody’s Investor Service has released a new analysis exploring how over $4 trillion in listed debt is exposed to a larger degree of credit risk associated with environmental considerations. This insight explores the work done and what it means.
This webinar is the first of TNFD’s piloting clinics, which are designed to share learnings from ongoing pilots of the TNFD’s beta framework. The pilots presented in this session focus on the first two sections of the LEAP Approach, Locate and Evaluate, and features speakers from Acciona, a Spanish renewables and infrastructure company, and Reckitt, a UK-based healthcare and consumer goods company, along with the organisations supporting them in their piloting.
Global Trade Analysis Project, Natural Capital Project, WWF (February 2020)
A study using cutting-edge models to investigate the global economic impacts of natural capital depletion. It looks at this over 140 countries, all industry sectors, and six critical ecosystem services such as water supply, and timber supply.
The second TNFD piloting clinic is on the LEAP Approach for Financial Institutions, focusing on the Scoping, Locate & Evaluate stages. The speakers are from S&P Global on their data work around mining and renewable energy, and asset manager Sail Ventures on their &Green Fund which is primarily invested in cattle in Colombia.
In this webinar, the TNFD releases the third version of its beta framework. Hear from Taskforce Members Jessica McDougall (BlackRock), Judson Berkey (UBS), and Alexis Gazzo (EY), along with Tony Goldner, TNFD’s Executive Director, and Emily McKenzie, TNFD’s Technical Director on the contents of the new release, which include updates to the draft disclosure recommendations, a discussion paper on scenarios, and a discussion paper on the social dimensions of nature-related risk.
Natural Capital Finance Alliance and UN Environment World Conservation Monitoring Centre (June 2020)
A report which outlines how financial institutions can better understand the business sectors and financial mechanisms at risk from biodiversity loss, and how financial institutions can lay the groundwork for biodiversity-related target setting.
This new reports finds “that the financial risks associated with the loss of biodiversity will become increasingly important in 2020 – especially in the lead up to the United Nations Biodiversity Conference in October in Kunming (China).” It highlights the mutual reinforcement of the climate and nature crises and the challenge this poses to decision makers.
“The second of three reports in the World Economic Forum’s New Nature Economy series, provides the practical insights needed to take leadership in shifting towards a much needed nature-positive economy.”
A guide outlining multiple approaches to measuring biodiversity, which aims to “help financial institutions to find a measurement approach that fits their needs.” It provides a comprehensive overview and evaluation of seven tools: BFFI, BIA-GBS, CBF, GBSFI, GID, ENCORE, IBAT.
A landmark report which “explains how nature-related risks matter to business, why they must be urgently mainstreamed into risk management strategies and why it is vital to prioritize the protection of nature’s assets and services within the broader global economic growth agenda.”
This report creates a framework for organisations to understand nature-related risk to business. It includes a literature review of existing material, a synthesis framework for how nature-related risk emerges, a typology (from literature) of high-importance risks, and a set of case studies.
An infographic showing how Earth’s natural systems play a vital role in regulating the climate and protecting humanity – for example, that the biosphere has absorbed 54% of man-made greenhouse gas emissions over the past 10 years.
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