Financial institutions call on world leaders to adopt Global Biodiversity Framework

Written by Adam Cadle

13/12/2022

World leaders have been urged by 150 financial institutions representing more than US$24trn in assets to adopt a post-2020 Global Biodiversity Framework at the UN Biodiversity Conference COP15.

Led by the Principles for Responsible Investment (PRI), the UN Environment Programme Finance Initiative and the Finance for Biodiversity Foundation, the statement calls on governments from around the world to adopt the framework for economic players, including financial institutions.

The framework aims to help financial organisations take action to halt and reverse nature loss by 2030.

Signatories to the statement include some of the largest asset and investment managers in the world, such as AXA Group, Legal & General Investment Management, Manulife Financial Corporation, Fidelity International, Groupe La Banque Postale, Storebrand Asset Management, Sumitomo Mitsui Trust Asset Management, and UBS Bank.

The framework would set a mandate for the alignment of financial flows with the preservation of global biodiversity.

The PRI stated that the post-2020 Global Biodiversity Framework should support the assessment and disclosure of nature-related impacts and dependencies, provide clear targets and definitions to take action, and support the development of a pipeline of nature-positive projects and investments.

“Climate change and biodiversity loss are inextricably linked challenges, which present systemic risk for investors,” commented PRI CEO David Atkin.

“Through this statement, the investment community itself has demonstrated a commitment to support global efforts to halt and reverse biodiversity loss.

“It is essential for governments to adopt an enabling global biodiversity framework so that all economic actors may move together on nature.”

Storebrand Asset Management CEO Jan Erik Saugested added: “The private financial sector is critical if we are to deliver the urgent action required to halt and reverse biodiversity loss in this decade.

“Some financial institutions are already taking important steps to address biodiversity loss, but voluntary actions alone will be insufficient to change practices across the financial sector in a way that protects and restores biodiversity at the rate and scale required.

“It is therefore critical that the Global Biodiversity Framework creates the impetus for governments to create the enabling environment that will support and scale up actions from the financial sector to reverse biodiversity loss in this decade.”

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