The financial system today is funding the destruction of the natural world. To date, the changes recommended to address the problem have been too narrowly focused on disclosure, too incremental, and too slow. Much bolder, systemic change is needed.
Financial institutions and regulators that choose to lead will need a reference guide, including a comprehensive diagnosis and set of more ambitious prescriptions.
Aligning Global Finance with Nature’s Needs: A Framework for Systemic Change is the second white paper released by Finance for Biodiversity (F4B).
It builds on our first white paper, Towards a Common Framework at the Nexus of Financing and Biodiversity, released in April 2020.
The Framework for Aligning Global Finance with Nature’s Needs is made up of six, core elements. These elements, individually and taken together seek to:
Introduce absent, and/or improve on existing, weak feedback signals that significantly increase the materiality of biodiversity in private and public financial decision-making.
Make financing that results in net biodiversity loss less attractive, and financing that results in no net loss or net positive biodiversity outcomes more attractive.
Advance and align the narrower ‘financial risk’ lens of traditional, private financial intermediaries, and the broader ‘impact’ lens that concerns policy and a growing community of private financing actors.
Aligning Global Finance with Nature’s Needs: A Framework for Systemic Change in based on the learning from F4B’s portfolio of activities. It has been prepared by Robin Smale and Simon Zadek, along with team members including Charlie Dixon, Jeremy Eppel, Jason Eis, Liz Gallagher, Mark Halle, Rupesh Madlani, Nathalie Nathe and Philippa Wisbey. Many thanks to the many individuals who provided valuable feedback and insights throughout the preparation of this paper.
Comments are welcomed. Please direct these to:
Robin Smale: firstname.lastname@example.org
Simon Zadek: email@example.com