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Environment and Climate Ministers from the G7 countries have agreed on a joint statement to tackle global nature loss at a recent meeting in Sapporo, Japan. The ministers committed to the swift and effective implementation of the Global Biodiversity Framework (GBF), aiming to halt and reverse biodiversity loss by 2030. There was a distinct emphasis on the need for funding from various sources, including private finance, to support developing countries in their efforts to protect nature.
In line with these commitments, a new report by the United Nations Environment Programme Finance Initiative (UNEP FI), the Principles for Responsible Investment (PRI), and the Finance for Biodiversity (FfB) Foundation highlights the importance of investors supporting innovative financial solutions to address biodiversity risks. The report urges investors to help raise the required $200 billion per year by 2030, as stated in the GBF.
The report, entitled “Stepping up on biodiversity: What the Kunming-Montreal Global Biodiversity Framework means for responsible investors,” provides guidance and advice specifically for investors looking to align their activities with the goals of the GBF. In addition to investing in innovative financial solutions, the technical report recommends integrating biodiversity into investment decision-making and assessing and disclosing nature-related dependencies, impacts, risks, and opportunities in line with the GBF targets.
Investors who align their activities with the goals of the GBF will be better positioned to manage physical and transition risks related to nature and to seize opportunities linked to the shift towards nature-positive economies. UNEP FI has been the gateway for financial institutions, policymakers, and leading researchers to take practical, science-based action on international frameworks such as the GBF.
Before the 15th Conference of the Parties to the Convention on Biological Diversity (COP15), UNEP FI and PRI issued a statement signed by 150 financial institutions, including banks, investors, and insurers, representing over $24 trillion in assets under management, calling for the adoption of an ambitious framework. UNEP FI also works with banks, insurers, and investors to accelerate nature action in the financial industry through initiatives such as pilots for the Taskforce on Nature-related Financial Disclosures (TNFD), and the Principles for Responsible Banking (PRB) Biodiversity Community.
The recent G7 Environment and Climate Ministers’ commitment to combating biodiversity loss and the recommendations from the UNEP FI, PRI, and FfB Foundation report present significant implications for procurement practices. Aligning with these goals will not only foster a more sustainable and environmentally friendly supply chain but also contribute to managing risks associated with biodiversity loss and potential policy developments.
To support these global initiatives, procurement professionals and stakeholders should actively seek to collaborate with suppliers who demonstrate responsible practices, invest in innovative financial solutions, and prioritise environment conservation. Incorporating biodiversity considerations into procurement decision-making processes will not only help organisations comply with the emerging regulatory landscape but also create opportunities for growth in the emerging nature-positive economy.
By championing sustainable procurement strategies and fostering partnerships with environmentally responsible suppliers, procurement teams and stakeholders can play a pivotal role in driving positive change and helping the UK achieve its biodiversity conservation goals in line with the Global Biodiversity Framework.
