Report by Finance for Biodiversity Foundation guides institutions on balancing climate and biodiversity investments
The Finance for Biodiversity (FfB) Foundation has released a report aimed at helping financial institutions bridge the gap between investments driven by climate change and biodiversity, emphasizing how to maximize benefits in both areas while avoiding unnecessary trade-offs.
The Finance for Biodiversity (FfB) Foundation has released a report aimed at helping financial institutions bridge the gap between investments driven by climate change and biodiversity, emphasizing how to maximize benefits in both areas while avoiding unnecessary trade-offs.
FfB, comprising around 70 financial institutions, including major European asset managers and insurers, was established in March 2021 to promote collaboration among financial institutions to combat nature loss.
The report titled “Unlocking the biodiversity-climate nexus” offers recommendations from the FfB Foundation’s impact assessment working group for banks, insurers, asset managers, and asset owners. The guide, launched at the European Business and Nature Summit in Milan, highlights synergies and ways to reduce trade-offs between climate and biodiversity investments.
Key recommendations for financial institutions include supporting solutions that generate synergy between biodiversity and climate and minimize trade-offs, identifying and prioritizing sectors with a high impact on both biodiversity and climate, engaging with companies using existing frameworks, establishing sector policies that consider synergies and trade-offs, and integrating biodiversity into climate targets, policies, and reporting.
The report underscores the importance of recognizing the interlinkage between biodiversity and climate change and the need for a holistic approach to avoid negative side effects when making climate-related investments. The Finance for Biodiversity Foundation’s report contributes to the growing framework for biodiversity investment, building on initiatives like the Taskforce on Nature-related Financial Disclosures (TNFD). Over 150 institutions from 24 countries, with over €20 trillion in assets, have signed the Finance for Biodiversity Pledge, committing to protecting and restoring biodiversity through their financial activities and investments.
