Wave

WORKSTREAMS
AND PROJECTS

LEGAL LIABILITY

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.

 

Legal liability may be direct, a matter of breaking rules concerning biodiversity, or indirect, such as where biodiversity loss is linked to illicit financial flows and other criminal activities. 

 

There are widely accepted precedents for extended liability to financiers. Banks today can be held legally liable for providing financial services to international organised crime gangs, assisting enemy governments, corrupting governments, and complicity in bribery. With the rights of nature being codified in many countries, and the potential for 'ecocide' to become a crime, extending liability to the providers of finance is an important route for crystallising material risks on the balance sheets of financial institutions.

Key Projects

MARKET EFFICIENCY AND INNOVATION

Data is the lifeblood of the of financial system. For nature impacts and risks to be integrated in decision making requires timely, good quality, usable information.  Biodiversity data, such as about the state of forests or species often come from public sources. 

Developing standards and methodologies for data is the starting point for aligning finance to protecting biodiversity. Metrics make biodiversity related risk and value visible to financial decision making, and can be part of a process of creating materiality.

Key Projects

 
 
 

CIVIL MOBILIZATION

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.

Calls for a more citizen-centric finance align well with technological advances. Digitalisation can be a game-changer in empowering citizens in financial decision-making.  Radical increases in accountability can be secured through digitalised transparency, with significant advances made in the sphere of public spending. 

Key Projects

 

BRIDGING FINANCIAL RULES
AND POLICIES

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. Public financial institutions, central banks, regulators, public services and finance ministries must all align their policies and practices with biodiversity-related public policies and biodiversity-related international public policy commitments.

Policymakers and financial regulators can and do take steps to ensure that financial markets are aligned to broader public policy goals. Private financial institutions should be required to ensure and demonstrate that they are aligned to the public goals and targets. For biodiversity, this would require them to periodically undertake and report on nature stress tests of their balance sheets, and to set out a future pathway for nature impacts to track to zero or positive.

 

Key Projects

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. 

Key Projects

 
 

FINANCE FOR BIODIVERSITY Initiative

contact@f4b-initiative.net

+44 (0) 844 8000 254

© 2020 FINANCE FOR BIODIVERSITY Initiative

  • Twitter
  • LinkedIn