More than 30 banks have joined a working group led by the UNEP Finance Initiative (FI) to hash out guidelines for financial institutions to set nature-related targets and align their portfolios with global biodiversity targets.
The 34 institutions from 24 countries around the world have signed up to the Principles for Responsible Banking (PRB), and the work will build on previously released guidance for biodiversity target-setting, released two years ago, in light of the Global Biodiversity Framework (GBF) agreed under the UN in Montreal in December.
“Participating banks of the working group will be involved in activities including the development of a Theory of Change for nature that considers the relationship between banking activities and the natural world, exploration of the meaning of the GBF to banks and how banks can contribute to the Framework’s goals, analysis of resources currently available and needed to close the biodiversity financing gap, and suggestion of measures to encourage and enable nature-friendly businesses,” UNEP FI said.
“Members of the group will also explore how to integrate the rights of indigenous peoples and local communities in their nature targets, as well as ways to leverage their existing climate mitigation and net-zero targets towards addressing biodiversity loss.”
The initiative aims to address the massive risks – estimated to some $58 trillion in economic value generation globally each year – businesses including the finance sector face from nature and biodiversity loss.
Working with the Science Based Targets Network, the Taskforce on Nature-related Financial Disclosures, the UNEP World Conservation Monitoring Centre, and others, the new working group will also look to align banking guidelines with other major initiatives as the world steps up efforts to comply with the GBF.
Credit Agricole, First Abu Dhabi Bank, and UBS Group will act as co-leads of the working group, while other members include ANZ, Banco Santander, Barclays, BNP Paribas, Commerzbank, Credit Suisse, ING Bank, Itau Unibanco, Standard Bank, UniCredit, and Woori Financial Group, among others.
“The updated guidance to be produced by this working group will allow PRB signatories – now constitute around half of global banking assets – that are interested in tackling the loss of biodiversity and nature to apply a holistic and systematic approach to set and achieve nature targets,” UNEP FI said.
“It will also help forge a new path for the whole banking sector to take urgent action on the topic, supporting the implementation of the goals set out in the GBF.”
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