With around half of bank loans directed to firms that are exposed to potential financial loss due to ecosystem deterioration, banks today are seeking innovative, yet well-validated, strategies to manage nature-related risks and to support nature-positive action by clients. In doing so, they are looking for solutions to help act on their risk exposures, while also closing the annual USD 700 billion biodiversity financing gap.
The UN Environmental Programme Finance Initiative (UNEP FI) recognises banks’ imperative to take not just sectoral, but also commodity-level insights and use them to evolve policies and existing client dialogues. That’s why UNEP FI has issued new Principles for Responsible Banking (PRB) member guidance – Sector Action Guidance for Nature: Getting Started in the Agricultural, Forestry and Mining Sectors. Developed in partnership with The Biodiversity Consultancy (TBC), and with input from volunteer banks from the PRB Nature Working Group, this new PRB Sector Guidance aims to translate the recommendations from the PRB Nature Target Setting Guidance into practical, sector-specific actions.
By making explicit the specific priority actions they can support clients to take in high impact sectors such as mining, agriculture and forestry, the Guidance is aimed to empower banks in their risk mitigation efforts across six key commodities, namely bauxite, copper, cattle, wood, soy and palm oil. In doing so, it complements existing section action guides, such as those developed by the Taskforce for Nature Related Financial Disclosure (TNFD), making it easier for banks to include nature in client dialogues and policies.
Released in conjunction with UNEP FI’s robust programming in support of CBD COP16 – including the second ever Finance and Biodiversity Day on 28 October 2024 – the Guidance provides easy-to-use lists of no-regrets actions in key sectors that the front office can ask for today – making new ways of doing business easier than ever.
Join with UNEP FI as we mobilise our extensive network of over 500 banks, insurers, and investors to emphasise the critical role of finance in biodiversity conservation. Download the report here.