The materiality of biodiversity impacts depends in part on associated liabilities. Liabilities might arise through the application of the rule of law and relevant regulations and standards. We are working to identify sectors and strategies where legal action might create non-linear impacts to restore and protect biodiversity. Read more about this project.
MARKET EFFICIENCY AND INNOVATION
Data is the lifeblood of the of financial system. Timely, good quality, usable information biodiversity data is critical for nature impacts and risks to be integrated in decision making. We are supporting the development of the data frameworks through the Taskforce on Nature Related Financial Disclosures and work on open source data and have developed a methodology for assessing nature risk on balance sheets.
Citizens are the ultimate owners of the world’s financial assets, as well as being members of the families, communities and nations that live within and depend upon nature and biodiversity. They should have rights, information and mechanisms to make decisions on how their money is deployed, as savers, investors, those insured, consumers, taxpayers and voters. We are working on exploring how mobile payment platforms could be a means for consumers to act for nature and mapping efforts to link finance, biodiversity and values. We also engage with civil society organisations providing technical narrative inputs to support their advocacy.
BRIDGING FINANCIAL RULES
Aligning public policies with biodiversity is crucial, including greening public spending and procurement, reforming subsidies and incentives and aligning sovereign debt arrangements, and monetary practices such as asset purchases within quantitative easing programmes to nature's needs. Our work includes setting out a policy framework for systemic change, exploring China’s role in financing biodiversity and assessing biodiversity risks on financial institution balance sheets .
RESPONSE TO CRISIS
Nations across the globe are reeling from the economic and financial impacts of the COVID-19 pandemic. The collapse in government revenues threatens to reverse years of steady economic growth, particularly in emerging markets. F4B’s contribution in this area is to examine the greenness of the stimulus and develop proposals, financing vehicles (nature performance bonds) and develop deals for greening sovereign debt.