Business for Nature’s Post

How can the financial services sector contribute towards a #NaturePositive future? 🌱 Over half of the global GDP is estimated to be moderately or highly dependent on #Nature. Therefore, financial institutions that underestimate the value of nature are likely to expose themselves to significant risks and missed opportunities. To secure a sustainable future, it's critical for the financial services sector to focus on the following priority actions and opportunities: 🌎 Build internal capacity to act on nature. 🌎 Develop financing policies, strategies and transition plans that favor nature. 🌎 Embed nature in risk management systems. 🌎 Develop robust nature-related reporting systems. 🌎 Engage with high nature-impact and high nature-risk businesses. To support this transition, guidance developed by Planet Tracker in collaboration with Business for Nature, the WBCSD – World Business Council for Sustainable Development and the World Economic Forum outlines the sector-specific actions to ensure the financial services sector plays its part in halting and reversing #NatureLoss by 2030. 🔗 Read more: https://bit.ly/3rVLost

The ASEAN+3 Macroeconomic Research Office and the Council on Economic Policies have published a joint policy brief, clarifying the implications of the BCBS’ recommendations for financial supervisors and regulators, with a particular focus on ASEAN+3: 1️⃣ Incorporating climate-related risk drivers and other related risk drivers, such as nature-related risks, into the evaluation of financial risks across all risk categories. It’s crucial that these assessments are properly reflected in the computation of risk-weighted assets (Pillar 1). 2️⃣ Establishing and revisiting supervisory expectations for assessing and managing climate-related risks, including transition planning. This also involves incorporating climate risks into the Internal Capital Adequacy Assessment Process (ICAAP) (Pillar 2). 3️⃣ Enhancing the disclosure of climate-related financial risks by updating disclosure standards. This includes the issuance of machine-readable disclosure templates that encompass all climate risks (Pillar 3). Read the policy brief here 👉 https://bit.ly/4bJRIVO #climatechange #climaterisk #bcbs #banking

🌍🌱💵 In case not yet seen: Our new #FinanceProsperity flagship report is out! It highlights the important role of the banking sector and financial sector authorities in emerging markets & developing countries in driving the transition towards lower carbon and climate-resilient economies - without risking financial stability. 👉 Read the full report here: https://lnkd.in/ge-46f2b 📰 Press release here: https://lnkd.in/gFv4MkKp 🎥 Check out the launch video here: https://lnkd.in/evYhsx3r 🔍 Key Findings: 1. Nearly 60% of banks in developing countries invest less than 5% of their portfolios in climate-related projects, and over 25% offer no climate financing at all. 2. In developing regions, banks are the main financial players, unlike in advanced economies. With the right support, they have the potential to significantly help close the climate financing gap, which is estimated to be 2.8% of GDP in additional annual investments in EMDEs between now and 2030. 3. Meeting climate financing needs requires not just banking regulations but broader policy support and clearer definitions of "green." While banking authorities must maintain a focus on financial stability and inclusion as they implement climate-related tools, some policies can achieve "win-win" outcomes, benefiting both climate finance and financial health. Explore the Finance & Prosperity 2024 report, a new annual series, to learn more about these emerging policies and how they can create beneficial outcomes for both climate finance and financial stability. Many thanks to amazing leads and co-authors FIONA STEWART Martijn Regelink Erik Feyen Nepomuk Dunz Francois Lesage #ClimateFinance #Sustainability #FinanceProsperity #WorldBank #ClimateRiskManagement

This paper could certainly be an asset to study and manage emerging risks related to both macroeconomic scenarios and its societal and financial impact when derived of climate-related events. 1. Conceptual Framework: The paper's proposed framework for understanding nature-related risks provides a valuable tool for identifying and analyzing potential risks. By mapping out macroeconomic transmission channels and emphasizing the concept of "double materiality," the framework helps policymakers to better understand how nature-related risks can impact the economy and financial system. 2. Empirical Analysis: The paper's empirical analysis offers insights into the current exposure of the global banking system to nature-related risks. This information can be used to identify vulnerable sectors and financial institutions, and to inform the development of targeted risk management strategies. 3. Policy Implications: The paper's discussion of takeaways for macroeconomic and financial sector policies and frameworks provides valuable guidance for policymakers. By understanding the potential impacts of nature-related risks, policymakers can take steps to mitigate these risks and promote financial stability. 4. Societal and Financial Impact: The paper highlights the potential societal and financial impacts of nature-related risks. By studying these risks, policymakers can develop strategies to protect vulnerable populations and ensure the long-term sustainability of the financial system. Overall, the paper is a valuable resource for anyone interested in understanding and managing emerging risks related to nature-related risks. By providing a conceptual framework, empirical analysis, and policy implications, the paper can help policymakers to develop more effective strategies for addressing these risks. #NatureRelatedRisks #MacroeconomicRisks #FinancialStability #PolicyImplications #SocietalImpact #RiskManagement

𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗦𝗲𝗰𝘁𝗼𝗿 𝗮𝘁 𝗮 𝗖𝗿𝗼𝘀𝘀𝗿𝗼𝗮𝗱𝘀 𝗶𝗻 𝗘𝗺𝗲𝗿𝗴𝗶𝗻𝗴 𝗠𝗮𝗿𝗸𝗲𝘁𝘀: 𝗖𝗹𝗶𝗺𝗮𝘁𝗲 𝗥𝗶𝘀𝗸𝘀 𝗮𝗻𝗱 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 𝗚𝗮𝗽𝘀 𝗗𝗲𝗺𝗮𝗻𝗱 𝗔𝗰𝘁𝗶𝗼𝗻. In almost 60% of banks in Emerging Market and Developing Economies (EMDEs), lending for climate-related investment accounts for less than 5% of their overall portfolios, and more than one-quarter offer no climate financing at all, according to a new The World Bank Bank report.  This is significant because in developing economies, banks dominate the financial sector, unlike in advanced economies where the financial sector is more diversified. Climate change is expected to have a significant impact on economic opportunities and development outcomes in EMDEs, requiring far greater investment than they currently receive. Banks in EMDEs have the potential to play a larger role in closing the climate financing gap.  #EMDE #climatechange https://lnkd.in/enxStcQh

🌍 Navigating Nature-Related Regulations: 🌿 The WWF and UNEP FI report, “Navigating Nature-Related Regulations for Banks,” is a valuable consolidation and contextualization of existing knowledge on nature-related financial risks. Consolidation of Knowledge: This report brings together existing knowledge, providing a comprehensive overview that is particularly useful for banks and consultancies navigating the regulatory landscape. Contextualization: It contextualizes the regulatory landscape, making it easier for financial institutions to understand and implement necessary changes. No Groundbreaking News: While it may not introduce groundbreaking new concepts, it serves as a valuable resource by bringing together various aspects of nature-related financial regulations. By proactively addressing nature-related risks, banks and consultancies can safeguard their financial health and contribute to a sustainable and resilient global economy. 🌱💼 https://lnkd.in/dR5XE5Zu

Bringing #nature to the heart of #finance: fireside chat at the UNEP FI Global Roundtable with UNEP FI Head Eric Usher (Usher, E.) and WWF International Director General Kirsten Schuijt. With a 73% decline in wildlife and biodiversity risks increasing, Kirsten and Eric outline the most pressing issues for financial institutions and regulators to address. They also discuss a new joint UNEP FI and WWF report, Navigating Nature-related Regulations for #Banks: Mapping the #Policy Landscape. The first-of-its-kind publication provides a comprehensive overview for banks to understand the latest regulatory developments on nature-related issues and for government policymakers to consider ways to promote coherent and effective nature-related policies for the banking sector. Download the report, and register for a 16 January 2025 webinar with UNEP FI, WWF, and central bank representatives: bit.ly/4gvzOYV #GRT2024 Watch online here: www.unepfi.org/grt-live

🔥 This fireside chat was an absolute highlight on the first day of the #GRT2024. Our research found that central banks and supervisors, on a global scale, are starting to acknowledge the necessity of tackling nature-related risks as part of their prudential mandate.  🌍 Twenty-nine jurisdictions, totaling more than EUR 75 trillion of banking assets, have already made initial steps reflecting nature-related considerations in their prudential frameworks. Regions with high ambitions include the EU, Brazil, and several Southeast Asian countries, including Singapore, Malaysia and the Philippines. 🔗 It is important to promote coherence and synergies between prudential regulation and the wider policy landscape for banks; considerations for nature-related policy interventions to focus on include:  1. Promoting accessibility and availability of reliable and decision-useful nature data 2. Mobilizing resources and expertise towards advanced risk measurement modelling 3. Addressing externalities to reflect harmful environmental impacts better 🙏 It's not just about the report but also about the collaborative effort. This is a significant step forward, made possible through our partnership with Usher, E. Kirsten Schuijt Maud ABDELLI Christine J. Wanjiku Mwangi, CFA Aaron Vermeulen Elisa VACHERAND Nicolas P. Elizabeth Aceituno Sem Houben Laura Canas da Costa Pina Saphira Siti Kholifatul Rizkiah

Did you know that over 50% of global GDP depends on nature? It shows the interdependence of nature and our economy, which makes it a critical factor in investment decisions. Matter’s Nature Impact & Dependency solution helps you quantify your portfolio’s exposure to nature-related risks and opportunities. Based on the Taskforce on Nature-related Financial Disclosures (#TNFD) best practice we help you: ➡ Identify core dependencies on natural systems ➡ Quantify your portfolio’s impact ➡ Enable multi-level analysis and comparisons. Download our brochure here to find out more: https://lnkd.in/eshpBPeB #ESG #SustainableInvesting #NatureImpact

Matter in the news! Financial institutions face significant risks due to climate change. The recent report by the Financial Stability Board (FSB) highlights the varying approaches global regulators are taking to address nature-related financial risks. Despite the recognised challenges, such as lack of reliable data, hindering comprehensive assessments, there’s a growing appreciation of the need for action. Matter’s Chief Sustainability Analysis Officer, Lise Pretorius, is quoted today in both the Financial Times’ Sustainable Views and the Portfolio Adviser's PA Future. “This report highlights that while regulatory authorities' recognition of nature risk is not uniform, and is in some ways still in its infancy, nature as a financial risk is clearly on the global regulatory and supervisory agenda. Climate and nature are so deeply intertwined that we cannot separate them, and we see the recognition of the work still to be done on data, methods, and scenarios as positive: as with climate, financial authorities play an important role in guiding the development of frameworks and approaches risk assessment. At the same time, firms and financial institutions are in many cases already going beyond regulatory expectations on nature, as we have seen with growing global TNFD adoption. We’re excited to be part of this virtuous circle by contributing to robust, scalable nature data at this critical point in history." The findings of the stocktake will be presented at the upcoming G20 Brasil 2024 meeting of finance ministers and central bank governors. Read the articles right here: https://lnkd.in/dk7kvZkC & https://lnkd.in/d5VWCFSz Discover Matter’s data and Nature Impact & Dependency to understand portfolio and company level dependency and impact on natural capital across dozens of granular themes and risk profiles: https://lnkd.in/eshpBPeB Contact us today to discuss your portfolio’s impact and dependency https://lnkd.in/eESK-Wss #SustainableFinance #ESG #News