New standard aims to help financial institutions assess the impact of their loans and investments on biodiversity and take action to reduce damage and contribute to the protection and restoration of nature
The Partnership for Biodiversity Accounting Financials (PBAF), an international partnership of banks, asset managers and investors, has presented its new accounting standard for financial institutions to measure the impact of their loans and investments on biodiversity.
According to the organisation, the standard can be used by every bank, asset manager or pension fund to measure and take action in a targeted manner to reduce their negative impact on nature and protect and restore biodiversity.
Roel Nozeman, senior advisor on biodiversity at ASN Bank and PBAF programme director, presented ‘PBAF Standard v 2022’ earlier this week on behalf of the 36 PBAF participants.
He commented: “Biodiversity is under severe pressure worldwide. And yet our society and economies are highly dependent on the functions that nature provides. The financial sector has a crucial role to play in reducing damage to biodiversity and in guiding the sustainable use, protection and restoration of nature. Being able to measure our impact on biodiversity is an important prerequisite for fulfilling this role.”
The PBAF standard describes what is needed to carry out a biodiversity footprint – an assessment for financial institutions to measure, manage and report on the negative and positive impact of their loans and investments on biodiversity.
According to Nozeman, the report presented this week gives financial institutions the insights they need to get started right away. “It is an invitation to all financial institutions worldwide to join us in building a sustainable future,” he added.
Impact Investor spoke to Nozeman earlier this year, when the standard was still under development. Link to the full article, below.