The Summary for Policymakers (SPM) of the IPBES Business and Biodiversity Assessment report was officially released on Monday 9 February, following the approval process at the IPBES-12 Plenary. Finance for Biodiversity Foundation have published a short paper translating the outcomes of the Assessment for financial institutions, to provide support to our community in implementing its recommended next steps for nature action.
The Finance for Biodiversity (FfB) Foundation welcomes the IPBES Assessment, as it provides a further scientific basis for taking urgent actions on nature, and calls on governments, businesses, and the finance community to implement its recommended next steps for nature action. The paper highlights the Assessment’s key messages and their potential implications for financial institutions.
The Assessment is clear that all businesses have impacts and dependencies upon nature and experience material risks from the degradation of biodiversity and natural ecosystems. It identifies systemic risks and affirms that despite limitations in data and measurement approaches, unequivocal action can, and should, be taken now.
The Assessment provides clarity on the roles and responsibilities of different stakeholders and outlines 100 next-step actions towards meaningful progress. It highlights the key role of financial institutions in shifting financial flows away from negative activities (greening finance) and towards positive activities (financing green), as well as in supporting transition efforts.
The paper spotlights three key potential implications for financial institutions:
- Financial institutions are expected to be an essential part of the response;
- The “enabling environment imperative” and reinforced sustainability expectations;
- The need for methodological developments in portfolio biodiversity measurement.
Beyond recognition of science, all stakeholders must translate the IPBES-recommended actions into mainstream implementation. We believe this is essential if we hope to achieve the 2030 goals and targets of the Global Biodiversity Framework.