Twelve projects have been launched to explore the gaps and improve integration between the financial system and biodiversity.
The new projects are part of the first phase of the ‘integrating biodiversity into finance: building a nature-positive future’ initiative and will start in 2023.
The longer-term aim is to build a multi-stakeholder community that can drive the development of knowledge, tools and a skilled community to incorporate reporting biodiversity for all business sectors.
Embedding biodiversity into finance
The purpose is to foster a holistic approach to develop the solutions needed to embed the values of biodiversity into finance.
The phase one awards will seed partnerships and co-design from the outset, bringing together researchers and experts from the finance and business sectors.
Addressing knowledge gaps
The finance system has a key role in shaping how the global economy responds to the intertwined challenges of biodiversity loss and climate change.
The recent Nature of Business UK survey found the majority of business leaders want to take steps to tackle biodiversity loss, but progress has been slow for a number of reasons.
The finance sector and businesses want better information and ‘decision grade’ data to help them incorporate biodiversity-related risks and opportunities into their strategic planning, risk management and investment decisions.
They also want to understand how biodiversity contributes to and is impacted by activities including along global supply chains.
Tackling biodiversity loss
These phase one projects involve academic institutions working in partnership with a wide range of financial sector and business partners.
The projects
Reducing commodity-driven forest and biodiversity loss by exploring and filling data gaps for due diligence
Project lead: Dr Antje Ahrends, Royal Botanic Garden Edinburgh and Dr Jonathan Green, University of York
Financial rewards for improved biodiversity outcomes
Project lead: Professor Paul Brereton, Queen’s University Belfast
Co-creating and applying a theory of change for biodiversity credits: towards a nature-positive future
Project lead: Professor Richard Field, University of Nottingham
Solent to Sussex Bay seascape restoration network
Project lead: Professor Stephen Fletcher, University of Portsmouth and Dr Claire Evans, National Oceanography Centre
Integrating finance and biodiversity for a nature positive future
Project lead: Professor Ben Groom, University of Exeter
Nature positive small and medium-sized enterprise finance
Project lead: Dr Robyn Owen, Middlesex University
Science-based markets for nature recovery
Project lead: Professor Richard Pywell, UK Centre for Ecology and Hydrology and Dr Steven Reece, University of Oxford
Integrating nature-climate scenarios and analytics for financial decision-making
Project lead: Dr Nicola Ranger, University of Oxford and Professor Paula Harrison, UK Centre for Ecology and Hydrology
Robust environmental, social and governance data for biodiversity: towards a spatially-sensitive approach to sustainable finance
Project lead: Dr Steven Reece, University of Oxford and Professor Richard Pywell, UK Centre for Ecology and Hydrology
Mediating the first transaction of biodiversity stewardship credits
Project lead: Dr Axel Rossberg, Queen Mary University of London
Integrating finance and biodiversity for a nature positive future
Project lead: Dr Hannah Rudman, Scotland’s Rural College, Dr Christopher Ellis, Royal Botanic Garden Edinburgh and Professor Marc J Metzger, The University of Edinburgh
Nature-positive investment opportunities through solar parks
Project lead: Professor Piran White, University of York
Multidisciplinary research
Further details on phase two of the programme, in partnership with Innovate UK, will be announced in the new year.
Jacky Wood, Head of Business Partnerships at Natural Environment Research Council (NERC), said:
The current United Nations Biodiversity conference (COP15) negotiation is highlighting the importance of building biodiversity into financial systems.
This new research will help address knowledge gaps, supporting the transition to a more nature-positive global financial system.
This new investment adds to NERC’s growing ‘Green Finance’ portfolio. It will bring together a community of researchers and experts from across disciplines to help the finance sector be part of the recovery and restoration of our natural environment.
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