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.
TNFD Releases a Discussion Paper on Nature Transition Plan
The Taskforce on Nature-related Financial Disclosures (TNFD) releases a discussion paper on nature transition plans
World Wildlife Fund Releases Voluntary Biodiversity Credit Position Paper
World Wildlife Fund (WWF) releases a position paper on voluntary biodiversity credits
Bloomberg Releases Global Biodiversity Finance Report
Bloomberg releases a global biodiversity finance report aimed at analyzing the latest developments in global biodiversity funding
World Economic Forum Releases Nature Finance Report
World Economic Forum releases nature finance report, aimed at providing recommendations for businesses on nature strategy
Sustainalytics Releases Global Biodiversity Fund Report
Sustainalytics releases a report on global biodiversity funds, aimed at analyzing the development trends of these funds
UN Principles for Responsible Investment Releases Priorities for COP16 Biodiversity
The United Nations Principles for Responsible Investment releases priorities for COP16 biodiversity
World Economic Forum Releases Natural Capital Investment Report
World Economic Forum releases a report on natural capital investment, aiming to discuss the necessity and feasibility of investing in natural capital
WWF Releases Nature-related Risks for Systemically Important Banks Report
The World Wildlife Fund releases a report on the nature-related risks for systemically important banks