FfB Foundation launched the second edition of the Nature Target Setting Framework for Asset Managers and Asset Owners

The Finance for Biodiversity Foundation (FfB) proudly launched the second edition of the “Nature Target Setting Framework for Asset Managers and Asset Owners”, unveiled during a webinar on July 3, 2024. This event featured prominent FfB Foundation members and showcased the significant advancements made since the beta version´s release in November 2023.

The executive summary can be found here, the full document will be released later in July.

Building on the initial guidelines, this second edition represents a major step forward in empowering investors to set ambitious nature targets. It enhances the original framework and introduces new elements to help financial institutions align their investments with nature targets, reinforcing the urgent need to halt and reverse biodiversity loss by 2030.

“We are incredibly proud to have developed this second edition of the framework in collaboration with our dedicated members. It represents a collective effort to provide investors with the necessary tools to start developing and disclosing ambitious nature targets. Our signatories to the FfB Pledge are committed to disclosing their first targets by 2025, marking a significant step towards halting and reversing biodiversity loss and promoting sustainable investment practices.”, says Anita de Horde, Executive Director of FfB Foundation.

 

Key updates in this edition include:

· Three Types of Nature Targets: The framework adapts key targets into three categories—initiation targets, monitoring targets, and portfolio targets—providing a clear path towards the implementation of comprehensive portfolio targets.

· Unified Approach: The revised framework replaces the concept of beginner and advanced tracks with a unified approach, ensuring that all targets are geared towards being achieved by 2030, in alignment with the Global Biodiversity Framework.

· Impact Drivers Identification: The framework identifies three key impact drivers on nature for 10 priority sectors: land use change, volume of water use, and emission of toxic soil and water pollution.

· Data-Driven Target Setting: It establishes that sufficient data exists to start setting targets on these impact drivers, presenting concrete examples for investors.

· Detailed Guidance and Support: The framework offers comprehensive examples, processes, and detailed support to assist investors in setting effective nature targets.

This new edition underscores the Foundation’s commitment to providing asset managers and asset owners with the tools and guidance needed to contribute meaningfully to global biodiversity goals.

 

Scope

The scope of the beta and the second version is limited to the asset categories listed equity and corporate bonds. Additional asset classes, including sovereign debt, will be integrated into the guidance in future iterations.

Collaboration and Support

In developing this guide, we have collaborated closely with SBTN as a crucial partner and with UNEP FI, which has crafted analogous guidance for signatories of the Principles for Responsible Banking.
As we focus on asset managers and asset owners, this framework is not applicable to banks. We encourage all banks to look at the PRB Target Setting Guidance of the United Nations Environmental Programme Finance Initiative (UNEP FI) for assistance in establishing nature targets.

 

Read and download

Executive Summary

Full Guide

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