Biodiversity and ESG
Biodiversity has become an important topic in ESG, preceded only to climate change. How to pay attention to nature-related risks and opportunities has become a topic of global concern for various stakeholders.
The Task Force on Nature-related Financial Disclosures has developed disclosure guidelines and adopted a disclosure framework consistent with the Task Force on Climate-related Financial Disclosures. COP15 also develops global biodiversity framework, requiring countries to monitor, manage and disclose natural data.
Biodiversity, Nature and Climate
Biodiversity often comes with nature, which is the foundation of socio-economic activities and encompasses all renewable and non-renewable resources worldwide. Biodiversity is an essential component of nature. For example, the EU’s first comprehensive law on biodiversity and nature, the Nature Restoration Law, regulates both biodiversity and ecosystems.
Biodiversity and climate change have a synergistic effect, and they interact with each other. To address climate change, stakeholders need to consider how to ensure that biodiversity can maximize efficiency of climate actions.
Investing in Biodiversity
The UNEP believes that global biodiversity financing gap will exceed $2.7 trillion annually by 2030, and the current global investment scale accounts for less than one tenth, with 80% of the investment coming from public institutions such as governments and multinational banks.
Biodiversity investment tools will help investors assess the risks faced by their investment portfolios and identify specific industries, regions, and assets that are most susceptible. For example, the Nature Investor Toolkit released by Responsible Investment Association Australasia lists common biodiversity investment tools.
UNEP FI Releases Recommendations for Nature-related Reporting Framework
The United Nations Environment Programme Finance Initiative releases recommendations for nature-related reporting framework
Financial Stability Board Releases Report on Nature-related Financial Risks
The Financial Stability Board releases a report on nature-related financial risks
UNEP FI Releases Recommendations for Financing Nature-based Solutions
United Nations Environment Programme Finance Initiative releases recommendations for financing nature-based solutions
Network for Greening the Financial System Releases Global Nature-related Litigation Report
The Network for Greening the Financial System releases a global report on nature-related litigation
Global Reporting Initiative and Task Force on Nature-related Financial Disclosures Release Interoperability Mapping Resources
The Global Reporting Initiative and Task Force on Nature-related Financial Disclosures releases interoperability mapping
NGFS Releases Framework for Nature-related Financial Risks for Central Banks
The Network for Greening the Financial System releases the framework for nature-related financial risks for central banks
Introduction to Natural Capital Valuation in China by Asian Development Bank
The Asian Development Bank releases a report on the natural capital valuation in China to provide experience in natural capital accounting
TCFD Releases Information Disclosure Guidance for Financial Institutions
Task Force on Nature Related Financial Disclosures releases information disclosure guidance for financial institutions