Why is it relevant for organizations and financial institutions to measure their biodiversity impact?
Biodiversity is the diversity of life and nature on Earth, it is at the foundation of human well-being and prosperity. Today, biodiversity loss – the reduction or disappearance of biological diversity – is a global crisis and one of the most daunting challenges of our era. Many ecosystems are already undergoing irreparable degradation, undermining Nature’s and humans’ capacity to prosper and be resilient.
Biodiversity loss is a global crisis and one of the most daunting challenges of our era. Financial institutions have a crucial role to play in preventing further biodiversity loss and restoring nature.
The financial sector’s activities and investments affect biodiversity and, in turn, are exposed to physical, transition and reputational risks resulting from its loss. Ultimately, such risks translate into financial risks, leading to macroeconomic deterioration, which, in turn, undermines the financial system’s stability.
With their decisions, financial institutions play an important role in society by allocating capital and they can be important agents of positive change.