For financial institutions, nature is the next frontier

Financial institutions understand the need to accelerate progress toward net zero—and many are actively advancing efforts to do so. But climate is just one part of a larger nature-based ecosystem on which people, industries, and entire economies depend. Today, many elements that make up that ecosystem, from water and critical minerals to farmland and pollinators, are under threat. Some are being depleted, others contaminated, and still others destabilized by habitat declines.

In their role as capital providers and advisors to entities and individuals around the world, financial institutions are at the epicenter of many of these changes, and their portfolios fundamentally depend on and impact nature. This two-way relationship gives institutions a unique vantage point to identify key risks, fund smart interventions and open new avenues of growth. By leading on nature, financial institutions can also facilitate a just transition that addresses environmental challenges in ways that support human rights, social inclusion, and the eradication of poverty.

Achieving these goals can’t be left to chance. For the sake of the planet and their own long-term growth, financial institutions need to develop a comprehensive nature strategy.