Johannesburg will see the African launch of the world’s first step-by-step guide to help banks conduct a rapid natural capital risk assessment by the Natural Capital Finance Alliance (NCFA). The guide is produced in collaboration with global audit firm PricewaterhouseCoopers.
The guide has already been piloted by five banks, including FirstRand Group and the Development Bank of Southern Africa and promotes the use of the recently launched ENCORE tool (Exploring Natural Capital Opportunities, Risks and Exposure), which enables financial institutions to understand and assess their exposure to natural capital risks. For example, it highlights how sectors such as agriculture rely on pollination, or how metal processing depends on maintaining ground water provision.
The guide aims to fully unlock the power of ENCORE and, as part of the Advancing Environmental Risk Management (AERM) project, help global banks to better predict how the degradation of nature might affect their financial future. AERM is a wider project by NCFA to help financial institutions understand and integrate the risks they face because of environmental degradation in their risk assessment methods and decision-making tools.
The guide also includes case studies of how financial institutions globally are using the power of ENCORE to assess their dependence on nature.
Download the guide here.
Please contact Lisa Petrovic for more information.
The Natural Capital Finance Alliance (NCFA) is a finance sector-led initiative, providing expertise, information and tools on material aspects of natural capital for financial institutions. It works to support these institutions in integrating natural capital considerations into their risk management processes and products as well as helping them to discover new opportunities. The NCFA secretariat is run jointly by the UN Environment Finance Initiative and Global Canopy.
About Global Canopy
Global Canopy is an innovative environmental organisation that targets the market forces destroying tropical forests. Our mission is to accelerate progress towards a deforestation-free global economy – through improved transparency, innovative finance and strategic communications. Since 2001, we have catalysed new thinking and action by leading governments, companies and investors worldwide. @globalcanopy
About UNEP FI
The United Nations Environment Finance Initiative (UNEP FI) is a unique global partnership between United Nations Environment and the global financial sector founded in 1992. UNEP FI works closely with over 230 financial institutions who have signed the UNEP FI Statements as well as a range of partner organisations to develop and promote linkages between sustainability and financial performance. Through peer-to-peer networks, research and training, UNEP FI carries out its mission to identify, promote, and realise the adoption of best environmental and sustainability practice at all levels of financial institution operations. For more information, see staging.unepfi.org