Biodiversity loss presents a material systemic financial risk. The interactions between asset managers and asset owners with nature are born primarily through their asset allocation and investment decisions. As such, investors have a crucial role in redirecting financial flows away from nature-negative impacts towards positive outcomes for nature.
This is the second version of the guidance document of the Nature Target Setting Framework for Asset Managers and Asset Owners, developed with the members of the Finance for Biodiversity (FfB) Foundation. This latest version builds on the first beta version of the framework published in November 2023, which marked a new milestone in the FfB Foundation’s efforts to help and support financial institutions to share knowledge and collaborate to halting and reversing biodiversity loss by 2030.
Following the Beta release in 2023, the second version, published in July 2024, refines the approach for listed equities and corporate bonds, providing clearer guidance for financial institutions.
The framework focuses on three types of targets:
- Initiation targets, which set the groundwork for action and capacity building;
- Monitoring targets, including KPIs and engagement targets, to track progress and drive continuous improvement;
- Portfolio targets, which align investment activities with biodiversity goals and outcomes.
With a growing network of global asset managers, owners, and banks, the framework helps drive action towards integrating biodiversity into investment strategies.