Global Joint Initiative on the Partnership of Biodiversity and Finance (PBF)

In the face of pressing challenges related to the COVID-19 epidemic, and amid complex and profound changes at the regional and global level. Challenges and opportunities are emerging at the same time, notably in integrating carbon neutrality and nature positive pathways including through ongoing green recovery actions. At this challenging moment, the financial sector’s role in advancing a green transition is notable.

We recognize:

1. The urgency and importance of tackling biodiversity challenges, especially the nexus between biodiversity and other global pressing challenges, including climate change, social economy, financial risks, public health and poverty alleviation.

2. Efforts related to biodiversity should also get considerable attention, especially in aspects such as gender, indigenous communities, equality and social justice, all of which are necessary for an inclusive approach.

We note:

1. Biodiversity issues have not been given enough attention till date, and lack su!icient financial sector understanding, engagement and action.

2. In current practices, a lack of robust enabling factors and associated mechanisms discourages financial sectors— both public and private sources — from investing in ecosystem friendly practices, and from avoiding ecologically harmful actions.

3. To increase the financial sector’s understanding about biodiversity, the capacity of financial institutions needs to be strengthened with innovative tools and expertise about biodiversity risks. Other facilities include human resources, information, data, and regular and sufficient exchanges are also needed to empower financial institutions.

Our Solutions:

With this in mind, we initiate this Partnership of Biodiversity and Finance (PBF), committing ourselves to work together to build a peaceful, stable, green and prosperous community with a shared future for mankind, reaffirm our support for the 2030 Agenda for Sustainable Development as a framework for green and inclusive growth, and work together to advance the achievement of the goals of the Paris Agreement and the upcoming Post-2020 Global Biodiversity Framework.

Our goals:

1. To prevent and minimize biodiversity risks associated with investment and trade.

2. To mobilize innovative financial resources and tools to close the financing gap.

We, as advocates, participants, and supporters of the partnership, call for the following areas to be set as the goals and direction of the joint efforts of all stakeholders:

1. Drawing on Article 2.1 (c)1 of the Paris Agreement, it is necessary to set an overarching goal of directing more investment toward biodiversity conservation, in order to better mobilize the resources and strengths of various stakeholders and more climate financing to achieve synergistic benefits conducive to biodiversity conservation. The financing needs for biodiversity conservation should be met as soon as possible.

2. Integrate biodiversity conservation into financial institutions’ services, business strategies, decision-making process, and policies. Financial institutions are encouraged to work with biodiversity groups to develop more tools, models and products to mobilize more financial resources in support of biodiversity conservation practices.

3. Call on governments to create an enabling investment environment to guide the flow of public and private investment in accordance with the requirements of biodiversity conservation, encouraging enterprises and investors to disclose biodiversity-related financial risks, and encourage private investment activities to be in compliance with the requirements for the upcoming Post 2020 by the Global Biodiversity Framework.

4. Formulate guidance to coordinate and integrate different financial products and technical tools developed by each stakeholder, regularly publish key outputs and progress information, including composing and publishing partnership development reports.

5. Environmental organizations working on biodiversity are suggested to make more effort to share biodiversity risks data, and, more importantly, develop and integrate technical tools which can support financial institutions’ efforts regarding reducing biodiversity risks of investment activities/projects.

6. Academic institutions and civil society organizations should also initiate capacity building of ESG for different governments, financial institutions, and international enterprises whose impact will be made overseas, particularly to enhance the leading roles of MDBs to demonstrate ESG practices and support capacity building, in order to avoid transferring biodiversity risks to less developed countries and regions and meet the needs of future responsible investment activities.

We have witnessed and welcomed existing good practices in conserving biodiversity around the world. This inclusive partnership works in close collaboration with other recognized initiatives. We recognize that environmental and social safeguard policies created and implemented by international development financial institutions and certain banks that adopted the Equator Principles (EPs) have incorporated biodiversity risks into decision-making processes. Meanwhile, Environment Social and Governance (ESG) and EPs are becoming the consensus of all stakeholders, with efforts from government, civil society organizations and academic institutions. We reaffirm and support the Principles of Responsible Investment (PRI), the Principles of Sustainable Insurance (PSI), and the Principles for Responsible Banking (PRB) issued by the United Nations, which set unique foundations and the strategy and practice framework for financial institutions. Other practices include the Global Sustainable Investment Alliance (GSIA), the EU’s Sustainable Finance Disclosure Regulation (SFDR), the Taskforce on Nature-related Financial Disclosures (TNFD), the Taskforce on Climate-related Financial Disclosures (TCFD), and China’s Environmental Information Disclosure System Reform Plan.