INCREASING THE ALIGNMENT OF GLOBAL FINANCE WITH NATURE
MARKET EFFICIENCY AND INNOVATION
Over half of the global economy is directly dependent on nature, and all of it indirectly. Financial institutions are paying attention to their alignment with the Paris Agreement’s targets on climate change but nature remains immaterial in most financial decision-making.
Climate and nature crises are inextricably linked, and nature now needs to be a priority for the whole of the financial community.
NatureFinance is developing a Global Alignment Index and Dashboard to allow private and public financial actors to identify, measure and disclose their degree of alignment with nature. An accompanying State of Nature-Finance Alignment Report will highlight action needed to set global finance on a net-zero, nature-positive trajectory.
High expectations of the financial sector to show how far their investments, lending, and expenditure are aligned with commitments to protect and enhance nature will be embodied in the UN Convention on Biodiversity’s Post-2020 Global Biodiversity Framework, due to be agreed in December 2022.
The emergence of disclosure frameworks such as the Taskforce on Nature-related Financial Disclosures (TNFD) and growing requirements from regulators is also focussing attention on the unprecedented systemic risk which nature loss represents.
The suite of interactive tools being developed by NatureFinance for financial institutions, governments, and international organisations will help them plan how to align financial flows with a nature-positive, net zero world.