Pushing forward with environmentally beneficial financial practices
In a bid to drive impactful action in emerging markets, where much of the world's remaining biodiversity is located, a series of strategic initiatives have been launched. These efforts aim to enhance the financial system's alignment with nature-positive goals by providing market clarity, capacity-building tools, and practical guidance for nature-related financial action.
The acronym at the centre of these collaborations, working with key partners, is accelerating market adoption of nature-related financial disclosures. Eric Usher, Head of the acronym, states that these collaborations contribute to nature-positive goals and build resilience in a rapidly changing world.
One of the initiatives, in partnership with the United Nations Sustainable Stock Exchanges (UN SSE) initiative, will develop model guidance to help stock exchanges support listed companies in adopting and implementing the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD). Anthony Miller, Chief Coordinator of the UN SSE Initiative, believes that stock exchanges can assist companies in adopting globally recognized frameworks like the TNFD.
The second initiative, in collaboration with the Principles for Responsible Investment (PRI) and the World Business Council for Sustainable Development (WBCSD), will support banks, insurers, investors, and real economy actors in preparing for nature-related disclosures, aligned with the TNFD recommendations. David Atkin, CEO of PRI, is proud to support the capacity-building initiative to integrate nature-related considerations into financial systems.
Angela Graham Brown, Director of Nature Action at WBCSD, stresses the need for better knowledge and improved confidence to mainstream consistent and credible action on nature. These initiatives are designed to address this need by providing practical guidance and tools for nature-related financial action.
The collaborations also aim to help stakeholders understand and address nature-related dependencies, risks, and opportunities critical to achieving global biodiversity goals. The initiatives emphasize the need for localized strategies, collective actions, and cross-border coordination to address biodiversity challenges in both emerging and developed markets.
The Convention on Biological Diversity (CBD) works in collaboration with partners such as the Inter-Agency Liaison Group and regional organizations like SPREP to address the biodiversity financing gap and align global financial flows with nature-positive outcomes under the Kunming-Montreal Global Biodiversity Framework. This framework aims to close a $20 billion biodiversity financing gap by 2025 and $30 billion by 2030.
These initiatives are backed by the International Climate Initiative (IKI) through the United Nations Development Programme (UNDP). The 2022 Global Risks Report identifies environmental threats as the top concern across all stakeholder groups, making these collaborations timely and crucial.
In conclusion, these strategic initiatives launched by the acronym represent a significant step towards aligning global financial flows with nature-positive outcomes. By providing practical guidance and tools, they aim to empower financial institutions and stock exchanges to make informed decisions that consider the impact on biodiversity. The partnerships also emphasize the importance of localized strategies and collective action, addressing both global and local biodiversity risks effectively.
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