{"id":31996,"date":"2023-02-07T07:00:10","date_gmt":"2023-02-07T06:00:10","guid":{"rendered":"https:\/\/blog.frankfurt-school.de\/?p=31996"},"modified":"2023-02-07T08:41:30","modified_gmt":"2023-02-07T07:41:30","slug":"biodiversity-and-finance-managing-the-double-materiality","status":"publish","type":"post","link":"https:\/\/blog.frankfurt-school.de\/de\/biodiversity-and-finance-managing-the-double-materiality\/","title":{"rendered":"Biodiversity and finance: managing the double materiality"},"content":{"rendered":"

On behalf of Bundesamt f\u00fcr Naturschutz (BfN)<\/a>, Frankfurt School\u2019s International Advisory Services (IAS)<\/a>, together with its partners World Wide Fund For Nature (WWF)<\/a> and Climate Company, prepared the new report \u201dBiodiversity and finance: Managing the double materiality\u201d<\/a>.<\/p>\n

The importance of biodiversity for the real economy<\/strong><\/h2>\n

The publication primarily targets financial institutions and emphasises biodiversity risks and dependencies in light of EU regulations. The content is, however, relevant to all of us considering the outcomes of the 15th<\/sup> UN Biodiversity Conference CBD \u2013 COP 15 in December 2022. The conference closed with a new global agreement on biodiversity, the Global Biodiversity Framework (GBF)<\/a>. A key goal of the agreement is to put at least 30 per cent of the world’s land and sea under effective protection by 2030. The aim is to stop biodiversity loss by 2030 and embark on the restoration of degraded ecosystems. The transformation of economic activities continues to be the focus when thinking about biodiversity conservation and sustainable use. Diverse studies<\/a> have revealed how businesses contribute to the unprecedented biodiversity loss and how, at the same time, such loss impacts the performance of companies \u2013 which is known as the double materiality principle.<\/p>\n

Biodiversity and the financial sector<\/h2>\n

The new report \u201cBiodiversity and finance: Managing the double materiality\u201d contributes to the understanding and managing of biodiversity-related physical and transition risks that should enable financial institutions to avoid losses and reputational damage. EU regulations on biodiversity relevant to the financial sector are analysed, such as the EU Taxonomy on sustainable activities, the Corporate Sustainability Reporting Directive (CSRD) and the Sustainable Finance Disclosure Regulations (SFDR). International guidelines, including the recommendations of the Taskforce for Nature-related Financial Disclosure (TNFD),<\/a> are highlighted. They are applying a four-pillar approach \u2013 governance, strategy, processes\/risk management and metrics \u2013 for institutions to manage risks and opportunities.<\/p>\n

Moreover, the report acknowledges that to manage the double materiality of biodiversity loss effectively, financial institutions need to go beyond regulation and illustrate how to do it in simplified steps. The reader will find exemplary initiatives, literature and business opportunities that could be capitalised on to enable financial institutions to turn the tide and positively impact nature.<\/p>\n

Various tools are available for identifying biodiversity risks and setting institutional targets <\/strong><\/h2>\n

Identifying and understanding nature-related risks is the underlying pre-condition for institutions to respond and mitigate those risks and contribute to the protection and conservation of nature and biodiversity. Various tools are available (or under development) and assist companies and financial institutions in this regard. For instance, the Exploring Natural Capital Opportunities, Risks and Exposure (ENCORE)<\/a> tool provides insights into dependencies and impacts of different sectors and processes on natural assets, the Integrated Biodiversity Assessment Tool (IBAT)<\/a> provides site-level data on local biodiversity values, while the Corporate Biodiversity Footprint (CBF), the Global Biodiversity Score (GBS), the Biodiversity Impact Analytics (BIA), the Biodiversity Impact Assessment Tool (BIAT) and Biodiversity Footprint Financial Institutions (BFFI) support the process of assessing companies\u2019 (negative) impacts on biodiversity. The Science-based Targets Network (SBTN)<\/a> is helping institutions define and act on science-based targets to manage their impacts on nature. The WWF\u2019s Biodiversity Risk Filter and Water Risk Filter<\/a> aim to facilitate this process and assist companies in identifying the highest priority areas concerning biodiversity and water. The Filter builds on and complements existing tools and data providers, especially ENCORE and IBAT.<\/p>\n

Targets are relying on activities that contribute to biodiversity protection and conservation. Such activities can be found across sectors. Next to sustainable land management practice, different industries can apply resource-efficient and less polluting technologies and apply circular products and production methods that, on the one hand, can contribute to protecting nature and, on the other hand, save costs.<\/p>\n

Enjoy reading the report and navigating relevant EU regulations, tools and recommended actions to manage the double materiality of biodiversity loss.<\/p>","protected":false},"excerpt":{"rendered":"

On behalf of Bundesamt f\u00fcr Naturschutz (BfN), Frankfurt School\u2019s International Advisory Services (IAS), together with its partners World Wide Fund For Nature (WWF) and Climate Company, prepared the new report \u201dBiodiversity and finance: Managing the double materiality\u201d. The importance of biodiversity for the real economy The publication primarily targets financial institutions and emphasises biodiversity risks […]<\/p>\n","protected":false},"author":109,"featured_media":31997,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[2333,2334,2335],"class_list":["post-31996","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fs-unep-centre","tag-biodiversity-conservation","tag-double-materiality-principle","tag-sustainable-activities"],"acf":[],"_links":{"self":[{"href":"https:\/\/blog.frankfurt-school.de\/de\/wp-json\/wp\/v2\/posts\/31996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.frankfurt-school.de\/de\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.frankfurt-school.de\/de\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.frankfurt-school.de\/de\/wp-json\/wp\/v2\/users\/109"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.frankfurt-school.de\/de\/wp-json\/wp\/v2\/comments?post=31996"}],"version-history":[{"count":9,"href":"https:\/\/blog.frankfurt-school.de\/de\/wp-json\/wp\/v2\/posts\/31996\/revisions"}],"predecessor-version":[{"id":32062,"href":"https:\/\/blog.frankfurt-school.de\/de\/wp-json\/wp\/v2\/posts\/31996\/revisions\/32062"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.frankfurt-school.de\/de\/wp-json\/wp\/v2\/media\/31997"}],"wp:attachment":[{"href":"https:\/\/blog.frankfurt-school.de\/de\/wp-json\/wp\/v2\/media?parent=31996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.frankfurt-school.de\/de\/wp-json\/wp\/v2\/categories?post=31996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.frankfurt-school.de\/de\/wp-json\/wp\/v2\/tags?post=31996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}