This workstream seeks to identify sectors causing biodiversity loss which might be vulnerable to litigation, public opprobrium, or shareholder divestment. The work will identify additional harms related to this biodiversity damage, which might increase such legal or public traction, such as corruption and damage to health. The work includes due diligence on the likely effectiveness of precedent setting, and different forms of liability, and engagement with large shareholders and identify levers that would shift attitudes and willingness to take action.
This workstream scans opportunities for fintech to accelerate the democratisation of financial choices relating to biodiversity and the financialisation of biodiversity and then helps to position them for application at scale, potentially working alongside fintech providers or their customers.
F4B works with partners to support campaigning and advocacy opportunities highlighting the nexus between the financial system and biodiversity destruction. Our portfolio ranges from working with China Dialogue to support a series of media commentary regarding the role of the financial sector in biodiversity loss and restoration to commissioning new analysis that tracks the recovery spending of the G20 governments and their alignment with the protection of nature.
Our big deals and offsets work focuses on unlocking at-scale finance for biodiversity-positive nature-based solutions. Primarily, this aims to ramp up land use carbon offset markets and ensure high quality biodiversity standards are hardwired into institutional processes and market mechanisms. We work with leading partners in the space to enable existing communities to move closer towards large-scale transactions. In addition, our approach considers whether and how innovative financial instruments can work alongside the existing carbon offset market to crowd in private investment to this space.
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 response to the Covid crisis, and the opportunity to consider new pathways that alleviate pressure on governments, while locking in sustainable finance solutions and increasing biodiversity resilience. This work currently includes both exploring opportunities for Nature Performance Bonds, to alleviate and emerging sovereign debt crisis, and our work on Green Stimulus.