Aligning Development Finance with Nature's Needs
Aligning Development Finance with Nature’s Needs:
Protecting Nature’s Development Dividend” uses readily
available data to estimate the dependency of development
finance institutions’ (DFIs’) collective balance sheet on
vulnerable nature (“dependency risk”), alongside the
potential damage to nature from their lending activities
(“nature at risk”).
We estimate aggregate balance sheet risk
of over 450 DFIs by taking a representative sample of five
multilateral development banks (MDBs). For these five MDBs,
we estimate “dependency risk” and “nature at risk” using
publicly available information on their lending activities.
The results are then scaled upwards to reach the total value
of assets held by DFIs globally. It shows that any financial
institution can and should make a credible, first-pass,
biodiversity-related stress-test of their balance sheet.
Comments are welcomed. Please direct these to:
Charlie Dixon - email@example.com