SFG had the pleasure of joining Climate Action and United Nations Environment Programme Finance Initiative (UNEP FI)'s Nature Finance and EU Sustainable Investment forums, two engaging and informative events that took place this Monday and Tuesday in Paris 🇫🇷
💡 Here's a quick recap from our team!
🌿 Day 1 contemplated the topic of nature finance from different perspectives, covering many important aspects from nature-based solutions to quantifying the risks that biodiversity loss can play in the economy. To emphasize the urgency of scaling investments to conserve ecosystems, the discussions highlighted the shift of nature finance from niche to mainstream, with financial institutions recognizing the economic rationale for integrating nature into investment strategies. Some of the key themes included:
• The importance of targeted engagement with corporates who are impacting nature. Just 250 companies in the MSCI Index are causing over 70% of nature-related harm.
• The need for USD 1 trillion yearly for ecosystem conservation, to avoid biodiversity loss and environmental degradation that will hinder economic growth in the long run.
• The potential of blended finance for scaling this nature market through strategic risk mitigation.
• The rise of nature-positive and highly profitable investments in areas like blue economy and regenerative agriculture.
🌍 Day 2 revolved around the broader sustainable investment space within in the EU, with a particular focus on climate change and effective coordination between regulators and the private sector to create the needed momentum to scale real impact through investments. The plenary discussions highlighted important topics such as:
• A need for refinement and simplification of the SFDR, using lessons learned from the first years of implementation to determine the most relevant indicators and to reduce fragmentation. In parallel there’s a demand for more guidance and knowledge transfer between the EU Platform on Sustainable Finance and financial firms.
• A shocking 25% of global assets will be exposed to climate risks by 2050. Quantifying and pricing these risks will be crucial to protect businesses and the millions of people that are venerable to climate disasters.
• Financial institutions shouldn’t “balance” impact and returns; instead, fiduciary duty needs to be re-thought as a concept to start incorporating climate, nature, governance, and social risks into analysis for long-term growth and prosperity.
👏 Climate Action and partners did an amazing job underscoring the interconnectedness of nature, climate and SDG finance themes, and the crucial role of finance in driving a sustainable future.
#SustainableFinance #NatureFinance #EUSustainableInvestment #ClimateAction #ESG #ImpactInvesting
Kali Taylor Luz Stecca Christine Caralis Wallier Karen Hitschke