Financial Services
Nature underpins our societies and economies, with more than half of the global GDP estimated to be moderately or highly dependent on nature. Financial institutions that underestimate the value of nature and choose to continue funding activities that harm rather than protect nature are therefore likely to expose themselves to significant risks and missed opportunities. They also risk being held accountable for financing activities that undermine the future of both the planet and people.
Embedding nature in financing decisions, reducing the financial flows that are having a negative impact on nature and increasing those with a positive impact on nature is therefore critical to secure a sustainable future. It is also essential in meeting the finance sector’s climate and sustainable development goals – given the interconnection between nature and climate clearly set out in the IPCC’s Sixth Assessment Report.
The sector actions serve as a guide to transform business practices and value chains and ensure the financial services sector plays its part in halting and reversing nature loss by 2030 - the mission at the heart of the Global Biodiversity Framework.
The overview was led by Planet Tracker.
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Impacts on nature
Financial services companies should direct their efforts towards addressing the most significant impacts on nature in their operations and value chains, namely:
Land and sea use change
Over-exploitation of natural resources
Pollution
Climate change
Invasive alien species
Dependencies on nature
The financial services sector is dependent on ecosystem services to function and grow. Companies rely heavily on:
Provisioning
Regulating and maintenance
Social or cultural
