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Home › Campaigns › Banks and Nature › Banks and biodiversity ›
Campaign

Biodiversity and nature finance initiatives

By: BankTrack
Contact:

nature@banktrack.org

Cover of BankTrack's report "Soft Commitments, Hard Lessons: an analysis of the Soft Commodities Compact". Photo: Rod Harbinson
By: BankTrack
Contact:

nature@banktrack.org

Why this campaign?

EU Finance @ Biodiversity Community and the Finance for Biodiversity Pledge

The Finance and Biodiversity Community has been running since 2016 and provides a "forum of dialogue" where financial institutions can share experiences and raise awareness for biodiversity in mainstream financial activities. It aims to promote the learning and implementation of strategic and practical best practices on EU level on how to foster investments in natural capital. The Finance and Biodiversity Community counts more than 30 member institutions among them ABN Amro, ASN Bank, GLS Bank and ING. 

In 2020 the Finance for Biodiversity Pledge was launched by the Finance @ Biodiversity community. The Pledge calls upon global leaders to commit to protect and restore biodiversity through their finance activities and investments by collaborating and sharing knowledge, engaging with companies, assessing impact, setting targets and reporting publicly on this before 2025. As of 2021, 89 financial institutions representing 19 countries, including nine commercial banks, have signed the Pledge. More information on the Pledge can be found in the guidance document.

Natural Capital Finance Alliance

The Natural Capital Finance Alliance (NFCA) aims to connect actors of the financial sector to manage the risks of environmental impacts. They refer to natural capital as a way of thinking about nature as a stock that provides benefits to people and the economy and argue thatenvironmental impacts like climate change andchanges in legislation can cause risk to natural capital. By providing knowledge and tools, the NFCA wants to create a set of guidance on how to incorporate environmental risks in investment and insurance decision-making. The Alliance and its Secretariat was orginally formed to support the signatories of the Natural Capital Declaration (NCD), which was launched in 2012 and has been signed by more than 40 financial institutions. The Declaration “formalises their commitment to the integration of natural capital considerations into financial sector reporting”. The NFCA is led by a Steering Committee, including representatives from YES Bank, National Australia Bank, and UniCredit, that functions as a decision-making governance body of the NFCA.

Partnerships for Biodiversity Accounting Financials

The Partnership for Biodiversity Accounting Financials (PBAF) is an independent foundation based in the Netherlands and a sister-initiative of PCAF (the Partnership for Carbon Accounting Financials). Their primary objective is to develop the PBAF Standard, which provides financial institutions with practical guidance on biodiversity impact and dependency assessments and defines what is needed in order for these assessments to deliver the right information to financial institutions. With this information financial institutions can effectively manage and report on biodiversity related risks and opportunities and contribute to the conservation and sustainable use of biodiversity. Development of the Standard started in 2019 and as of February 2022, it is supported by 30 financial institutions, including seven commercial banks. The first version of the PBAF Standard was presented in 2020 with further guidance, definitions, principles and requirements expected to be published in the first half of 2022.

Soft Commodities Compact

The Soft Commodities Compact (SCC) describes itself as a “unique, company-led initiative that works with the banking industry to help transform soft commodity supply chains and help the banks’ clients (companies) achieve zero-net deforestation by 2020”. It was launched in 2014 by the Consumer Goods Forum (CGF) and the Banking Environment Initiative (BEI) and was adopted by 12 banks. Compact banks made two commitments. First, compact banks aim to transform soft commodity supply chains to explore how they can finance the growth of the markets producing palm oil, timber products, soy and beef to the CGFs required net zero deforestation standards. Second, compact banks will work towards raising industry-wide banking standards through increasing their own due diligence processes by prioritising the establishment of internal mechanisms so as to ensure operations are consistent with internationally-recognised means of verification.

As outlined in our report, “Soft Commitments, Hard Lessons”, by 2020 none of the 12 compact banks met these commitments. More fundamentally, the world has not made progress towards halting forest loss, and the global commodities supply chains remain a major driver of this loss. Six years of the SCC sadly failed to contribute towards the objective of ‘zero net deforestation’, and has shown that a 'zero net' goal, and a reliance on certification schemes as the primary means to get there, are inadequate to the task of ensuring banks provide finance in a manner that protects the world's forests.

Taskforce on Nature-related Financial Disclosures (TNFD)

The Taskforce on Nature-related Financial Disclosures was launched in June 2021 and aims to develop a risk management and disclosure framework for organisations to act on nature-related risks. Their mission is to promote a “shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes”. The TNFD aims to provide financial institutions and companies with information to incorporate nature-related risks and opportunities into their strategic planning, risk management and asset allocation decisions. The TNFD is divided into a taskforce, consisting of 34 individual members, a Forum and a Secretariat and Stewardship Council. The Forum acts as a consultative network of 350 institutional members who support the work of the TNFD. In March 2022, TNFD released the first beta version of the framework, marking the beginning of an 18-month consultation process with “market players and stakeholders”. A further three iterations of the beta versions are planned for June 2022, October 2022, and February 2023, before the release of the final version in Q3 2023. For more information on the TNFD and its shortcomings see here.

Resources
Documents
Videos
Links
2023-06-01 00:00:00

BankTrack's submission to the public consultation on TNFD V0.4

BankTrack publication
2023-06-01 00:00:00 | BankTrack
2021-04-26 00:00:00

Brief to shareholders of Bunge re: proposal to improve the transparency and sustainability of its forest-risk supply chains

NGO document
2021-04-26 00:00:00 | Global Witness and Friends of the Earth
2021-04-06 00:00:00

BNP Paribas’ Soft Commodities Compact Reporting 2021

Other bank document
2021-04-06 00:00:00 | BNP Paribas
2021-03-22 00:00:00

Public letter of information on land irregularities practiced by the company Cargill Agricola S.A. and the encroachment of traditionally occupied land in the municipality of Abaetetuba, State of Pará

NGO document
2021-03-22 00:00:00 | Comissão Pastoral da Terra and others
2021-03-19 00:00:00

Countdown to Extinction

What will it take to get companies to act?
NGO document
2021-03-19 00:00:00 | Greenpeace
2021-03-19 00:00:00

Letter from BankTrack, Amazon Watch and Rainforest Action Network to Cambridge Institute for Sustainability Leadership on Action plan of the CISL’s report “Banking beyond deforestation"

Correspondence
2021-03-19 00:00:00 | BankTrack, Amazon Watch and Rainforest Action Network
2021-03-18 00:00:00

Shining a Spotlight

A critical assessment of food and beverage companies’ delivery of sustainability commitments
NGO document
2021-03-18 00:00:00 | Oxfam
2021-02-26 00:00:00

New BNP Paribas policy on soy and beef is a positive step, but lacks urgency

NGO document
2021-02-26 00:00:00 | Forests & Finance
2021-02-25 00:00:00

Monitor - Steak in the supermarket, forest on the ground

NGO document
2021-02-25 00:00:00 | Reporter Brasil
2021-01-18 00:00:00

Banking beyond deforestation

How the banking industry can help halt and reverse deforestation
Other document
2021-01-18 00:00:00 | Cambridge Institute for Sustainability Leadership
2021-02-01 00:00:00

CSR Report 2020

Annual report
2021-02-01 00:00:00 | Westpac
2020-11-30 00:00:00

Soft Commitments, Hard Lessons: an analysis of the Soft Commodities Compact

BankTrack publication
2020-11-30 00:00:00 | BankTrack
2020-11-16 00:00:00

The BEI & CGF’s ‘Soft Commodities’ Compact: Technical Guidance

Other document
2020-11-16 00:00:00 | Banking Environment Initiative
2020-11-16 00:00:00

The Banking Environment Initiative (BEI) & the Consumer Goods Forum (CGF)’s ‘Soft Commodities’ Compact

Other document
2020-11-16 00:00:00 | Banking Environment Initiative

The TNFD: What it is, who's behind it and why it's a major greenwashing risk

2022-12-09 10:31:11

The Consumer Goods Forum

News
BankTrack
Partners
Blog
External
BankTrack news BankTrack blog Partner news Partner blog

UBS and Santander’s ‘green’ bonds linked to deforesters and rancher accused of slave labour in Brazil

2023-10-17 | Greenpeace Unearthed
Blog
BankTrack news BankTrack blog Partner news Partner blog

Two months ago 62 organizations and 3 Goldman Environmental Prize winners wrote an Open Letter to the TNFD: No one responded

2023-07-27 | Shona Hawkes, Rainforest Action Network
BankTrack news BankTrack blog Partner news Partner blog

"MPs must seize historic opportunity" as House of Lords votes through landmark amendment to cut off UK financing of illegal deforestation

2023-06-13 | Global Witness
Blog
BankTrack news BankTrack blog Partner news Partner blog

The TNFD shows that global corporations will not solve the biodiversity crisis

Civil society open letter and BankTrack consultation submission highlight serious flaws in the framework
2023-06-01 | BankTrack, Forests & Finance Coalition
Blog
BankTrack news BankTrack blog Partner news Partner blog

COP15 greenwashing alert: Germany and Norway pledge 30 million euro to controversial corporate-headed nature reporting initiative at UN Biodiversity Summit

Civil society groups outraged funding will be handed to wealthy corporate initiative while those doing most to safeguard nature can’t secure sufficient funds.
2022-12-15 | Montreal, Canada | Rainforest Action Network
Blog
BankTrack news BankTrack blog Partner news Partner blog

Friends of the Earth US releases new briefing paper series on "Protecting Biodiversity from Harmful Financing"

2022-12-13 | Friends of the Earth US
BankTrack news BankTrack blog Partner news Partner blog

At COP15, investors announce Nature Action 100 to tackle nature loss and biodiversity decline

2022-12-11 | Montreal, Canada | Finance for Biodiversity Pledge
Blog
BankTrack news BankTrack blog Partner news Partner blog

Latest draft shows that TNFD’s reputation ‘as the next frontier in corporate greenwashing on nature’ remains solidly intact

2022-11-07 | BankTrack, Amazon Watch, Center for International Environmental Law (CIEL), Environmental Paper Network, Forests & Finance Coalition, Global Forest Coalition, Rainforest Action Network
Blog
BankTrack news BankTrack blog Partner news Partner blog

48 civil society organizations and networks express “profound concern” that TNFD will assist greenwashing

2022-10-13 | BankTrack, Forests & Finance Coalition
Blog
BankTrack news BankTrack blog Partner news Partner blog

Planning for public disclosures through hidden closed-door processes?

Why the Taskforce on Nature-related Financial Disclosures needs to overhaul its approach to transparency
2022-09-12 | Shona Hawkes, Rainforest Action Network
Blog
BankTrack news BankTrack blog Partner news Partner blog

You’ve probably never heard about TNFD: But it threatens to be the new frontier in corporate greenwashing

2022-08-15 | Shona Hawkes
Blog
BankTrack news BankTrack blog Partner news Partner blog

Civil society groups say UN-backed TNFD proposal risks opening a new frontier for corporate greenwashing on nature

2022-08-03 | BankTrack, Amazon Watch, Center for International Environmental Law (CIEL), Forests & Finance Coalition, Global Forest Coalition, Global Witness, Jubilee Australia Research Centre, Profundo, Rainforest Action Network, TuK INDONESIA, WECAN
BankTrack news BankTrack blog Partner news Partner blog

Bucking a long trend of negligence, shareholders urge Bunge to halt deforestation

The vote at the massive soy trader signals greater financier focus on forests
2021-05-10 | Friends of the Earth US
BankTrack news BankTrack blog Partner news Partner blog

1% of companies demonstrate 'best practice' on deforestation action, says CDP

2021-03-23 | Environmental Finance
BankTrack news BankTrack blog Partner news Partner blog

Big banks make a dangerous bet on the world’s growing demand for food

While banks and asset managers are promising to divest from fossil fuels, they are expanding investments in high-carbon foods and commodities tied to deforestation.
2021-03-07 | Inside Climate News
Blog
BankTrack news BankTrack blog Partner news Partner blog

Beefing up risk: the exposure of JBS’ financiers to financial, regulatory and reputational risks

2021-02-11 | Marília Monteiro - BankTrack, Merel van der Mark - Environmental Paper Network
BankTrack news BankTrack blog Partner news Partner blog

The Chain: Traders See Increased Pressure to Agree to 2020 Cut-Off Date in Cerrado

2021-01-19 | Chain Reaction Research
BankTrack news BankTrack blog Partner news Partner blog

Banking beyond deforestation

How the banking industry can help halt and reverse deforestation
2021-01-18 | Cambridge Institute for Sustainability Leadership
Blog
BankTrack news BankTrack blog Partner news Partner blog

Six years of the Soft Commodities Compact failed to slow bank finance for deforestation

New BankTrack research shows need for banks to move beyond certification requirements
2020-12-01 | Nijmegen | BankTrack
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Raiffeisen Out! Bank.Green End Coal Finance Plastic Banks Tracker Defund TotalEnergies Financial Exclusions Tracker Equator-Complaints.Org Don't Buy into Occupation Banks & Biodiversity Forests & Finance Drop JBS StopEACOP Fossil-Free Finance
BankTrack
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