Finance for Nature Report
Accounting for Biodiversity: Towards measuring and valuing the biodiversity impacts of financial investments
With the climate and biodiversity crises of the 21st century becoming increasingly material across all sectors, financial institutions have turned their attention towards natural capital and its influences and dependencies on investment activities. This shift has led to a range of guidance and frameworks geared towards valuing and measuring biodiversity impacts, risks, and opportunities within the context of sustainable finance. However, there are relatively few real-world examples that apply such frameworks to portfolios or investment projects.
The Accounting for Biodiversity working paper seeks to close this gap by providing examples of a process towards developing a scientifically robust and practical framework to measure biodiversity impacts and manage nature-related risks. Private credit firm ADM Capital’s engagement with SMEs and other companies through a sustainability lens provides the opportunity to develop and trial analytical tools, and manage biodiversity risks and impacts. Two of the firm’s Indonesia-focused impact initiatives in particular offer an outstanding volume of insight: the new Asia Climate-Smart Landscapes Fund (ACLF) and the 2018 Tropical Landscape Finance Facility (TLFF) I transaction.
This publication shares insights, challenges, and resources that financial stakeholders can apply to inform their own biodiversity approaches. It also serves to educate readers on the fundamental concepts of biodiversity, its materiality, and the range of guidance, metrics, and initiatives that are emerging. Using a variety of tools, from geospatial analytics to artificial intelligence, we aim to provide insights into the data, processes, and considerations behind the Accounting for Biodiversity journey.
Full report coming soon.