Responsible finance: A call to action for nature’s ‘super year’
There is finally an opportunity to integrate nature within financial decision making in the year ahead. How can we ensure it’s doesn’t become a lost opportunity?
2020 has been dubbed the Super Year for Nature as several events take place that will be critical for forging a new deal for the environment. These include the International Union for Conservation of Nature World Conservation Congress in Marseilles, France, in June and the COP15 of the United Nations Convention on Biological Diversity in Kunming, China, in October.
The hope is that this will be the year that companies, governments and financial institutions recognize nature’s financial value and that environmental degradation due to pollution and habitat loss is going to cost us all vast sums as we lose the protection and ecosystem services that nature affords us. This is the year we start both pricing this risk in and investing in nature in earnest.
This all begins this month in Davos, where it is hoped that a working group for nature-related risk will be announced to begin an education process, provide a paper and then an action plan for post-Kunming. The aim is to start building nature-related financial risk into the lexicon of the private sector and encourage engagement with natural capital measurements and metrics.
Whether the working group will morph into or inspire a taskforce for nature-related financial disclosure (TNFD) will depend on how successful the year ahead is in galvanizing support for nature from the key stakeholders globally.