Partnership for Biodiversity Accounting Financials (PBAF) presents standard for impact assessment

Today the Partnership for Biodiversity Accounting Financials (PBAF), an international partnership of banks, asset managers and investors, presents a new standard for financial institutions to measure the impact of loans and investments on biodiversity.

According to PBAF, every bank, asset manager or pension fund can use this to measure and take action in a targeted way towards reducing their negative impact, and protecting and restoring biodiversity. The PBAF participants call on other financial institutions to join them and work together towards a single global approach for the financial sector.

Biodiversity restoration
How can financial institutions reduce their negative impact on global biodiversity and work towards biodiversity restoration? A question that the Partnership for Biodiversity Accounting Financials (PBAF) has been pondering for several years. Today Roel Nozeman (Senior Advisor on Biodiversity at ASN Bank and PBAF Program Director) presented the report on behalf of the 36 PBAF participants.

“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 report we are presenting today gives banks, asset managers and pension funds the insights they need to get started on this right away. It is an invitation to all financial institutions worldwide to join us in building a sustainable future.”

From overview to a more step-by-step approach for financial institutions
The ‘PBAF Standard 2022’ describes by way of requirements and recommendations 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 (eg shares, bonds and green bonds) on biodiversity. For example, fund managers can estimate the loss of biodiversity from an investment in an international food company and gain insight into the underlying causes.

Besides important preconditions, the standard explains various methodologies and tools that financial institutions can use to map out their impact. Innovative examples are the use of satellite images to map deforestation and the detection of certain animal species through DNA traces in rivers.

The standard is harmonized as much as possible with other initiatives in the financial sector, such as the Taskforce for Nature Related Disclosures (TNFD), the Science Based Targets Network (SBTN) and the EU Align project.


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