Most financial institutions have no process to identify the impact of their financing activities on nature and biodiversity

Whilst it is recognised that this is a new area of focus within the financial system, and multi-stakeholder work is underway to create the same framework on nature and biodiversity as was created for climate-related disclosure, there are virtually no existing processes in place within mainstream finance. Less than 5% of financial institutions assessed acknowledged they had a process to identify the impact of their financing activities on nature. Given the intimate connection between climate and nature, and the underlying systemic risk due to nature’s contribution to the global economy, alignment within the financial system and all its stakeholders is essential to accelerate efforts in this area.