Story | 03 មីនា, 2008

Biodiversity, the Next Challenge for Financial Institutions?

The Biodiversity Business Case - This report provides a detailed analysis of the business case for financial institutions from a risk perspective.The report focuses notably on what the specific implications are for the commercial banking sector, asset managers and investors, and (re)insurance firms in terms of exposure to biodiversity business risks.
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Photo: Ivo Mulder

While the business case for climate change is now widely recognized, the business case for biodiversity has only to a limited extent been addressed. However, "biodiversity" or the ecosystem services that are supporting our way of living, bear characteristics of becoming the next challenge for financial institutions.

The report provides a detailed analysis of the business case for financial institutions from a risk perspective.The report focuses notably on what the specific implications are for the commercial banking sector, asset managers and investors, and (re)insurance firms in terms of exposure to biodiversity business risks. A general procedure provides an overview of available tools and best-management-practices to enable financial institutions to mitigate any adverse impacts proactively. Biodiversity is not all about risk. The report also identifies a number of biodiversity business opportunities that can be captured by financial institutions that make sense both from a financial as well as a conservation perspective. A number of recommendations are presented to both the financial sector, as well as to other stakeholder, such as NGOs, governments and multilateral institutions how to further build and communicate the business case for biodiversity to the financial community.