This report provides a snapshot of some of the discussions within FOSDA’s Biodiversity & Nature Working Group (BWG) throughout 2024. The group engages guest speakers to discuss different aspects of the evolving Nature Finance agenda, overcome limitations regarding emerging science, technology, standards, and methods related to biodiversity integration in finance. Each session begins with an anti-trust summary to emphasise the pre-competitive nature of discussions.
Below we briefly summarise the guest and area of discussion. A longer version of the notes is available to BWG members through a request to the FOSDA secretariat.
1. Nature Metrics
o Overview: Pippa Howard, Chief Nature Strategist at Nature Metrics, addressed the multifaceted challenges of integrating biodiversity considerations into business decision-making processes. She emphasized that businesses often struggle to align their operational practices with environmental sustainability goals due to a lack of understanding and data.
o Role of Nature Metrics: Nature Metrics serves as a crucial intermediary between businesses and the natural environment. By providing robust data and analytics, they empower companies to assess their environmental impacts more accurately and report on their sustainability initiatives effectively. This role is vital in helping businesses transition towards more nature-positive practices.
o Challenges: Businesses encounter significant barriers, such as the inherent complexity of ecological systems and the necessity for location-specific data. The OECD’s “State-Pressure-Response” model acts as a strategic framework for businesses. This model guides companies in understanding the baseline health of nature, evaluating the pressures they exert on ecosystems, and formulating appropriate responses to mitigate their impacts. The emphasis on understanding these dynamics is crucial for fostering a culture of accountability and proactive environmental stewardship within organizations.
2. Green Digital Finance Alliance (GDFA)
o Overview: The GDFA focuses on developing technology-driven business models that address critical climate and biodiversity challenges. Their ‘Making Oceans Count’ initiative is particularly noteworthy, aiming to enhance the accounting of oceanrelated risks within financial systems and promote sustainable practices in marine environments.
o Key Findings: During discussions, participants highlighted the pressing need for more granular metrics and actionable data tailored for financial institutions, especially in the context of marine environments. GDFA’s work underscores the importance of integrating digital blue metrics into financial decision-making frameworks, which can significantly improve the understanding of ocean-related risks and opportunities. This initiative aims to bridge the gap between technological innovation and practical application in the finance sector, ultimately leading to better-informed investment decisions that consider the health of marine ecosystems.
3. CDP
o Overview: CDP reported a remarkable 25% increase in environmental disclosures in 2023, reflecting a growing recognition among companies of the importance of addressing nature-related risks in their operations. This increase signifies a shift towards greater transparency and accountability in environmental reporting.
o Nature Reporting: Despite this progress, nature-related reporting continues to lag behind climate-related disclosures, which poses significant challenges for strategic decision-making. Many organizations still lack comprehensive frameworks to assess their biodiversity impacts effectively. CDP aims to enhance its corporate questionnaire to better integrate nature-related data, focusing on expanding the coverage of biodiversity metrics and improving alignment with global standards. This effort is essential for fostering a more holistic understanding of environmental risks and opportunities, enabling companies to make informed decisions that support sustainability.
4. Business for Nature (BfN)
o Overview: BfN’s mission is to drive credible business action towards a naturepositive economy by 2030. The organization works to mobilize businesses and advocate for policies that support biodiversity conservation and sustainable practices.
o Policy Ambition: Ahead of COP16, BfN calls for renewed policy ambition for nature, emphasizing the need for governments to take decisive action to protect biodiversity. The organization aims to facilitate business discussions at the conference, encouraging collaboration between the private sector and policymakers. By leveraging its global coalition of influential partners, BfN seeks to amplify the voices of businesses committed to nature-positive actions, fostering a collective approach to addressing biodiversity loss and promoting sustainable development.
5. Natural History Museum
o Overview: Gareth Thomas presented the Biodiversity Intactness Index (BII), a critical metric for measuring ecosystem integrity and assessing biodiversity loss across various regions. This index provides valuable insights into the health of ecosystems and their ability to support diverse species.
o Importance of BII: The BII is essential for tracking biodiversity changes and. informing decision-making processes, particularly in relation to economic dependencies on nature. By offering a comprehensive measure of biodiversity health, the BII helps stakeholders understand the implications of biodiversity loss on economic systems and supply chains. The index serves as a vital tool for policymakers, businesses, and conservationists alike, enabling them to make datadriven decisions that promote ecosystem resilience and sustainability.
6. Roundtable on Addressing Ecological and Economic Risks
o Overview: FOSDA members and key nature finance stakeholders convened to discuss the Nature Public Facility (NPF) concept, aimed at providing standardized nature-related data for market participants. This initiative seeks to enhance the availability and accessibility of high-quality data that can inform investment decisions and risk assessments.
o Earth Observation Role: The discussions emphasized the critical role of Earth observation in providing reliable data for environmental indicators. Participants highlighted the need for a deeper understanding of ecological risks and their economic implications, particularly in the context of global supply chains. By improving data access and quality, the NPF can support market participants in identifying opportunities and managing risks associated with biodiversity loss, ultimately contributing to more sustainable financial practices.
7. Credit Nature
o Overview: Credit Nature’s CEO, Cain Blyth, discussed the organization’s vision to drive a global movement focused on rewilding the planet for the benefit of both people and nature. This vision encompasses a holistic approach to nature restoration that integrates technology, finance, and data.
o Nature Credits Market: The conversation centred on the necessity for accurate measurement and reporting to facilitate nature-positive strategies. Blyth emphasized the importance of establishing credible baselines and standards for nature credits, which are essential for ensuring that investments deliver genuine environmental benefits. By promoting integrity in nature-related investments, Credit Nature aims to foster a market environment where businesses can confidently engage in initiatives that contribute positively to biodiversity and ecosystem health. The discussions throughout 2024 reflect a growing recognition of the interconnectedness of nature and business, with increasing efforts to integrate biodiversity into financial decisionmaking. The establishment of frameworks and metrics to support this integration is critical as the world moves towards a more sustainable future. A notable area of focus is the development of a nature data facility, led by TNFD, which will allow FoSDA members to influence an open-access database for monitoring the state of nature using key metrics as we move into 2025. The collaborative efforts of the BWG and its partners are paving the way for a more robust understanding of nature-related risks and opportunities.
