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Nature Target Setting Framework for Asset Managers and Asset Owners

The Nature Target Setting Framework for Asset Managers and Asset Owners beta version was launched during a webinar on 30 November 2023.

The beta version framework seeks to create a shared understanding and common language for investors on target setting, while steering private financial flows in alignment with the mission of the Global Biodiversity Framework to halt and reverse biodiversity loss by 2030.

The scope of this beta version is, for now, listed equity and corporate bonds. 

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Four types of targets

Four types of targets are set out in the framework to create a shared understanding and common language for investors: 

  • Initiation Targets: analyse exposure to nature-related impacts, dependencies, risks, and opportunities and embed these considerations in the governance, strategy, and capabilities of the organisation.
  • Sectoral, Engagement, and Portfolio Coverage Targets: take action to reduce material drivers of biodiversity loss in priority sectors by setting engagement and stewardship targets and aggregating these at the portfolio level.

Asset managers and asset owners are advised to establish initiation targets to be achieved by 2026 and sectoral, engagement, and portfolio targets to be achieved by 2030 or earlier. 

Full version will be launched in 2024

The next version of the guidance document is slated for publication in the first half of 2024, featuring specific targets for ten priority sectors. A subsequent version in the second half of 2024 and beyond will expand coverage to additional asset classes and incorporate positive impact targets. 

Collaboration

FfB Foundation will collaborate with SBTN, UNEP FI and other organisations in further development of the targets.

Banks are encouraged to refer to UNEP FI’s analogous PRB Target Setting Guidance for assistance in establishing nature targets. 

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