Investors should invest in innovative financial solutions to address biodiversity risks and help mobilise the required US$200bn per year by 2030, according to the Global Biodiversity Framework (GBF). This is one of three key recommendations of a new report launched today by UNEP FI, the Principles for Responsible Investment (PRI) and the Finance for Biodiversity (FfB) Foundation.
In December 2022, at the 15th Conference of the Parties to the Convention on Biological Diversity (COP15), 196 countries adopted the Kunming-Montreal Global Biodiversity Framework. In the face of unprecedented biodiversity loss, the GBF provides a framework to achieve its overarching aim to halt and reverse nature loss by 2030.
Stepping up on biodiversity: What the Kunming-Montreal Global Biodiversity Framework means for responsible investors provides guidance and advice specifically for investors looking to align their activities with the goals of the GBF. It supports investors in managing risks associated with the biodiversity crisis and preparing for anticipated policy developments.
In addition to investing in innovative financial solutions, the technical report recommends integrating biodiversity into investment decision-making and assessing and disclosing nature-related dependencies, impacts, risks and opportunities in line with the GBF targets. Investors who align their activities with the goals of the GBF will be able to better manage physical and transition risks related to nature, and to seize opportunities linked to the shift towards nature-positive economies.
Bridging science and markets, UNEP FI has been the gateway for financial institutions, policymakers and leading researchers to take practical, science-based action on international frameworks such as the GBF. Prior to COP15, UNEP FI and PRI issued a statement signed by 150 financial institutions, including banks, investors and insurers, representing over US$24trn in assets under management, calling for the adoption of an ambitious framework. UNEP FI also works with banks, insurers and investors to accelerate nature action in the financial industry through initiatives such as pilots for the Taskforce on Nature-related Financial Disclosures (TNFD), and the Principles for Responsible Banking (PRB) Biodiversity Community, a group of PRB signatories learning to support biodiversity protection and restoration.
Download the new report here.
Register for the launch webinar here.