Given the complexity of natural ecosystems, there is no single solution to the problem of biodiversity loss. We need to address the issue from a systemic perspective, targeting various direct and indirect drivers of biodiversity loss and carrying out a strategy for an all-encompassing regenerative economy. The financial sector plays a key role in shaping business and the economy, and therefore in restoring biodiversity. It must reconsider its practices and priorities to play a constructive role in the economy, ensuring that its activities foster economic and societal progress without undermining the environmental foundations of our livelihoods, and contributing to environmental regeneration wherever possible.

Call to decisive action

The consideration of biodiversity in finance has real momentum, with many important initiatives in the market creating new financial streams to close the funding gap in support of biodiversity. However, such efforts may prove to be short-lived if we do not address the roots of the problem: the individual and collective behaviours that brought earth’s ecosystems in such a deplorable state.

 

We need to go way beyond the direct impact of economic activities on nature: the biodiversity challenge calls for a complete rethinking of our economic system and cannot be tackled through ad-hoc interventions alone. There are deep economic axioms and cultural patterns that fundamentally drive biodiversity loss, which largely have to do with a growth paradigm based on value extraction, not least from the natural environment.

The focus of financial institutions should be on channelling money in ways that contribute to healthier societies and individuals, but individual and societal wellbeing are not sustainable when natural ecosystems are not in balance. It is therefore essential to limit possible harm to nature to a minimum and foster activities that support balanced ecosystems wherever possible. Anything less will not do. We must strike a reasonable balance between social and environmental priorities: this is already complicated enough, without adding financial return expectations to the equation. And while financial institutions might be tempted to wait for access to better data for more informed, more efficient decision-making, let’s be honest: we know what needs to be done to build a shared future for all life.

Download our paper and learn more about our approach, which is based on the belief that human activity cannot be separated from the environment in which we live and operate. It is our call to action to save our planet's biodiversity. Our lives and those of future generations depend on it. We hope you join us!

Biodiversity - Beyond risk and return

 

Read our paper and find out how the financial sector can contribute to preserving and fostering biodiversity.