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1、Nature Positive:Corporate Assessment Guide for Financial InstitutionsI N S I G H T R E P O R TA P R I L 2 0 2 5In collaboration withOliver WymanImages:Getty Images Disclaimer This document is published by the World Economic Forum as a contribution to a project,insight area or interaction.The finding

2、s,interpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum,nor the entirety of its Members,Partners or other stakeholders.2025 Wor

3、ld Economic Forum.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,including photocopying and recording,or by any information storage and retrieval system.ContentsForeword 3Foreword 4Executive summary 5Introduction 61 Assessing companies on

4、 nature 112 Indicators to assess companies on nature 162.1 Indicator 1:Material nature impacts and dependencies,17 and risks and opportunities2.2 Indicator 2:Nature metrics 232.3 Indicator 3:Nature ambition 262.4 Indicator 4:Nature targets 272.5 Indicator 5:Strategy and actions 292.6 Indicator 6:Pol

5、icies 342.7 Indicator 7:Governance 342.8 Indicator 8:Incentives 372.9 Indicator 9:Planned spend 382.10 Indicator 10:Independent verification of actions 392.11 Indicator 11:Supplier engagement plan 39Conclusion 40Appendices 41A1 Survey data 41A2 Sample financial institutions climate 45 assessment fra

6、meworksA3 Mapping of themes within transition planning 46 guidance to report indicatorsA4 Coverage of indicators in industry disclosure 47 standards and initiativesContributors 49Endnotes 51Nature Positive:Corporate Assessment Guide for Financial Institutions2ForewordDespite the urgency of the natur

7、e and climate crisis,investments in nature are still deeply underfunded.1 While the private sector puts$35 billion into nature-positive investments annually,it pours at least$5trillion into nature-negative investments each year.2 It is clear that a realignment of financing flows is needed to acceler

8、ate impactful steps to contribute to halting and reversing nature loss.Also,nature-positive transitions of the real economy could unlock trillions in economic opportunities.In its New Nature Economy report,the World Economic Forum identified$10 trillion worth of annual business opportunities and 395

9、 million potential jobs that can be created by 2030,requiring up to$2.7 trillion in annual investment.To date,nature funding is skewed towards nature conservation financing.While supporting these activities remains critical,allocating and scaling capital towards the systemic transformation of real e

10、conomy operations and value chains is pivotal to maximizing nature-related financing opportunities and meeting the goals of the Global Biodiversity Framework(GBF).This system-level strategic thinking is at the core of“financing the nature-positive transition”and can open significant lending and inve

11、stment opportunities for financial institutions.Financial institutions progress on nature directly depends on the companies they engage with.Understanding the nature impacts,transition plans and actions of their clients and portfolio companies is key to a financial institutions nature approach.To da

12、te,challenges with data and metrics have been cited by financial institutions as barriers to getting started but now is the moment to take action.The past decades work on climate has given financial institutions a head start,allowing them to build on their efforts towards both a net-zero and nature-

13、positive transition.Many financial institutions are already actively expanding their climate transition plan assessment frameworks to include nature,with the goal of demonstrating a forward-thinking and impactful approach to assessing and engaging with companies on nature.ING is working towards shar

14、pening its approach on nature,including assessing its lending portfolio,identifying key sectors and clients to support in nature transition,and integrating nature assessments into its climate transition plan framework.To steer their portfolios towards the goals of the GBF and maximize nature-related

15、 business opportunities,financial institutions should collaborate closely with their clients and portfolio companies.By working together,a systemic transformation of real economy operations and value chains can be achieved.Anne-Sophie CastelnauGlobal Head of Sustainability,ING Group Nature Positive:

16、Corporate Assessment Guide for Financial InstitutionsApril 2025Nature Positive:Corporate Assessment Guide for Financial Institutions3ForewordThe Kunming-Montreal Global Biodiversity Framework(GBF)called on nations and industries to take decisive steps by 2030 to halt and reverse nature loss,aiming f

17、or full recovery by 2050.Yet achieving these ambitious targets demands investments that far exceed current financial commitments,as well as more extensive public-private collaboration and private-sector engagement.While$1.2 trillion of annual investment in direct and nature-adjacent projects by the

18、private sector is required to reverse the decline in natural ecosystems,less than 3%has been committed at this point.Financial institutions find themselves at the heart of this transformative journey,holding immense influence overt driving investments towards nature and the ultimate success of the e

19、ffort to protect it.By embedding nature metrics into company assessment frameworks for decision-making,as well as using them to engage corporate clients and stakeholders,financial institutions can help industrial and other non-financial enterprises on their transformational journey towards a global

20、nature-positive transition.For the past several years,the World Economic Forum and Oliver Wyman have stressed the need for financial institutions to develop a practical approach to evaluating company performance on nature priorities.This is a crucial step towards fast-tracking investments in nature.

21、For instance,in our 2024 chief executive officer briefing paper,Financing the Nature-Positive Transition:Understanding the Role of Banks,Investors and Insurers,we made the case for why immediate action from financial institutions was imperative and identified two priority areas forfinancial institut

22、ions:the development of nature assessment frameworks and the collaboration between private finance using public finance andindustry.In this report,Nature Positive:Corporate Assessment Guide for Financial Institutions,we provide particulars on how financial institutions can develop a viable course of

23、 action.We also offer actionable insights tosupport financial institutions as they systematically assess their clients transition towards nature positive.The World Economic Forum and Oliver Wyman are continuing to collaborate with financial institutions to shape this agenda and meet this challenge h

24、ead-on.The time for action on nature loss is not in the future,but now.Akanksha KhatriHead,Nature and Biodiversity,World Economic ForumNick StuderPresident and Chief Executive Officer,Oliver Wyman Nature Positive:Corporate Assessment Guide for Financial Institutions4Executive summaryThe state of nat

25、ure has been declining rapidly,with wildlife populations having decreased by an average of 73%over the past 50 years.3 Human activity has already severely altered three-quarters of Earths land surface.This represents not only an environmental crisis but also a significant risk to economic stability,

26、4 as over half of the worlds gross domestic product(GDP)is highly or moderately dependent on nature.5,6 Acknowledging this challenge,196 countries adopted the Kunming-Montreal Global Biodiversity Framework(GBF)in 2022.The GBF charted a path for biodiversity that resembles the trajectory established

27、for climate change by the 2015 Paris Agreement and proposed that nature would follow asimilar developmental course.Financial institutions proactively acting on nature are more likely to be better positioned to assess nature-related risks comprehensively and capitalize on emergingopportunities.The ti

28、me to act is now.There is a pressing need to increase investment in business activities that reduce and prevent negative impacts on nature along the entire value chain.Financial institutions banks,investors and insurers have a critical role to play as providers of finance and de-riskers ofinvestment

29、.Firstly they need to develop practical approaches on how to evaluate corporates on their nature impacts.Guidelines are being developed to direct companies and financial institutions in the creation of their own nature transition plans.Leading frameworks include those from the Taskforce on Nature-re

30、lated Financial Disclosure(TNFD),the Glasgow Financial Alliance for Net Zero(GFANZ)and the World Wide Fund for Nature(WWF).However,less attention has been given to how financial institutions can start assessing portfolio companies alignment with institutional ambitions for nature.This report outline

31、s how financial institutions can start to assess company efforts to align strategies with the protection and restoration of nature.When establishing practices for nature,financial institutions should build on existing capabilities,frameworks and structures for climate.This report used climate transi

32、tion plan assessment approaches as a starting point,which were then supplemented with a series of interviews with financial institutions and leading non-governmental organizations(NGOs).In the end,11 indicators across three key dimensions of information were deemed relevant for financial institution

33、s assessing their corporate clients and portfolio companies progress and forward planning on nature:1.Company starting point:Financial institutions are eager to form a view on where companies stand on nature and how they are exposed to nature-related risk.Many begin by assessing impacts and dependen

34、cies,as well as associated risks and opportunities,and determining materiality of nature-related issues.2.Company ambition and targets:For material nature-related issues,financial institutions would like their portfolio companies and clients to develop and articulate ambitions and,over time,set targ

35、ets.3.Transition credibility and achievability:Financial institutions would like to see proof points demonstrating that nature ambitions andtargets are being embedded into a companys activities.Financial institutions can act now to assess companies on nature and integrate nature-related data into bu

36、siness-as-usual activities.Nature Positive:Corporate Assessment Guide for Financial Institutions5IntroductionThe state of nature has been declining rapidly over the last century;wildlife populations have been shrinking by an average of 69%over the last 50years.7 Three-quarters of the Earths land sur

37、face has been severely altered by human activity.This represents an environmental crisis,but it also poses a significant risk to economic stability.8 A majority of the vital ecosystem services on which the global economy and society depend are in rapid decline.While tackling climate change has been

38、the main focus of financial institutions and companies to date,those efforts must now be expanded to include all five drivers of nature change.These include climate change,land,freshwater or ocean use change,resource use or replenishment,pollution or pollution removal,and invasive species introducti

39、on or removal.9 These drivers touch the four major realms of nature land,ocean,freshwater and atmosphere.10Financial institutions must embed natureintorisk assessment frameworks to secure economic stability and shape a nature-positive future.The five drivers of nature changeFIGURE 1Climate changeLan

40、d/freshwater/ocean use changeResourceuse/replenishmentPollution/pollution removalInvasive alien species introduction/removalSource:Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services(IPBES);Science Based Targets Network(SBTN);Taskforce on Nature-related Financial Disclos

41、ures(TNFD).In 2022,196 countries adopted the Kunming-Montreal Global Biodiversity Framework(GBF)to halt and reverse nature loss by 2030,with a vision of living in harmony with nature by 2050.As part of this landmark agreement,signatory countries are required to translate the GBF into national biodiv

42、ersity strategies,action plans and sectoral guidance,and urge all parts of society to tackle nature loss alongside the climate crisis.Financial investments are critical to ensuring the GBFs success.Even though the term“nature positive”is not explicitly defined in the GBF,companies,financial institut

43、ions and non-governmental organizations(NGOs)are increasingly rallying around the concept as a means of contributing to the GBF.The Nature Positive Initiative defines“nature positive”as contributing to the“global societal goals.to halt and reverse nature loss by 2030,using a 2020 baseline,andachieve

44、 full recovery by 2050”.11 Investments in nature remain deeply underfunded,however,with$1.2 trillion worth of annual investment12 in direct and nature-adjacent projects required by the private sector to reverse the decline in natural systems.The focus of nature finance that is,finance contributing t

45、o the nature-positive goal of halting and reversing nature loss13 needs to broaden from conservation and restoration to include the reduction and avoidance of negative impacts in company value chains across all sectors of the economy.To that end,reducing negative impacts and striving towards a syste

46、mic transformation of real-economy company operations and value chains are at the core of financing the nature-positive transition,andrepresent the focus of this report.Nature Positive:Corporate Assessment Guide for Financial Institutions6Re-engineering of businesses operations and value chainTransf

47、orming the underlying systems New products and business modelConservation Restoration In value chainBeyond value chainDevelopment of common goods including nature technology,data and analyticsSystem-level collaborationand transformation,such as through landscape and jurisdictional initiativesAdvocac

48、y,capacity building and awareness raising AvoidExamples,not exhaustiveReduceRestore and regenerateTransformNew products or servicesForest restorationMangrove restorationRegenerative agriculture,sustainable aquaculture&forestryWildlife protection programmes Marine protected areas Deforestation-free a

49、nd conversion-free supply chain Sustainable transport Efficiency-enhancing technologies in operations to reduce waste and recycle water useRenewable energy Circular business modelsProduction and consumption activities that contribute to nature-positive outcomesFinancing the nature-positive transitio

50、n examples of what to finance FIGURE 2Source:World Economic Forum;Oliver Wyman.Nature Positive:Corporate Assessment Guide for Financial Institutions7Financial institutions survey FIGURE 3What would need to change in the wider ecosystem for you as a financial institution to increase financing to the

51、nature-positive transformation?Increased data availabilityPolicy change to incentivize action on natureIncreased data qualityMandatory/regulatory requirementsIncreased corporate demand for financing/underwriting nature initiatives/projectsClearly attractive economics for financing nature Mechanisms

52、to reduce risk/change risk profile(e.g.insurance,blended finance)86%83%78%75%69%69%58%Source:World Economic Forum;Oliver Wyman.A report by Business for Nature identified embedding nature in risk management systems as one of five key transformative actions financial institutions need to take to shape

53、 a nature-positive future.14 Nature-related financial risks are also a key concern for global financial system monitoring bodies,such asthe international Financial Stability Board(FSB).15 Despite initial efforts to systematically examine nature-related opportunities(using opportunity categorization

54、by the United Nations Environment Programme Finance Initiative and the Finance for Biodiversity Foundation16),many financial institutions tend to assess nature in their client portfolios through the lens of risk and compliance,rather than opportunity.For example,financial institutions based in the E

55、uropean Union(EU)are driven by Corporate Sustainability Reporting Directive(CSRD)disclosure requirements to act,and many respondents identified policy change(83%)and regulatory requirements(75%)as necessary for catalysing further financing for nature.However,some financial institutions are already b

56、eginning to view nature as a valuable opportunity.For instance,Legal&Generals asset management division emerged as the largest cornerstone investor in Ecuadors debt-for-nature swap,contributing$250 million in marine conservation loans in 2023.Similarly,Emirates NBD(ENBD)has set a sustainable financi

57、ng target,prompting the institution to guide its clients on blue and green bonds that emphasize water-related(and other)ecological initiatives.While regulatory requirements such as the CSRD are critical and have helped to drive progress on nature disclosure,leading financial institutions are already

58、 beginning to see beyond a regulatory compliance exercise to the compelling opportunities in nature investment.Survey respondents were asked how they perceive the future potential demand for nature-related opportunities(high/medium/low).They saw the following as the most promising business opportuni

59、ties,with more than 50%of respondents expecting high future demand:1.Process re-engineering to achieve operational efficiencies,such as in waste or water usereduction2.The mitigation of regulatory/environmental risks,such as pollution prevention and emissions reduction3.Financing or insurance for re

60、generative agricultureFurthermore,sustainable forestry,land conservation and restoration,nature-based solutions and emerging nature technology are also expected to have high future demand by more than 43%of survey respondents.Leading financial institutions are already beginning to see beyond a regul

61、atory compliance exercise to thecompelling opportunities in nature investment.Barriers to capital allocation and the business case for nature Over the course of 2024,the World Economic Forum and Oliver Wyman engaged with financial institutions through interviews,roundtables and surveys.In one survey

62、 conducted during this engagement,financial institutions were asked about the changes in the wider ecosystem required to increase financing for the nature-positive transition.Overwhelmingly,they cited the need for increased data availability(86%of respondents)and data quality(78%)among other factors

63、 as foundational for increasing investment in the nature transition.This report demonstrates that the data needed by financial institutions to assess corporate nature efforts through a comprehensive set of indicators may already exist.Nature Positive:Corporate Assessment Guide for Financial Institut

64、ions8The momentum for assessing corporate nature performance is building This report aims to outline a practical approach that financial institutions can apply to assess company efforts to align their strategies with the protection and restoration of nature.This approach will help them to identify k

65、ey information related to their portfolio companies.In a recent survey conducted by Oliver Wyman and the World Economic Forum,financial institutions identified areas where they believe more guidance is required to support further capital allocation to nature.Overall,four key areas were identified by

66、 more than 70%of surveyed financial institutions:Quantification of risks Quantification of opportunities Understanding financing needs for real-economy companies(including the analysis of key trends,sectors and technologies)Methodology to evaluate corporate performance on nature and company nature t

67、ransition plansMotivated by this finding,this report advises responding to the need for guidance by providing acollective perspective on how financial institutions can assess companies nature efforts and impacts.Sector reportsBOX 1The World Economic Forum,together with the World Business Council for

68、 Sustainable Development and Business for Nature,has issued 17 sector reports analysing nature-related business opportunities.These reports identify four to five priority business actions for each sector,grounded in each sectors key nature-related impacts and dependencies,and risks and opportunities

69、.Tackling these opportunities will require substantial investments of over$4.6 trillion.For example,one priority action for the automotive sector is to expand circularity to avoid and reduce material waste across the value chain.This will require investments in new technologies and efficiency-increa

70、sing mechanisms enabling companies to enhance processes and reuse more materials.This would lower the sectors negative effects on nature.For more information on sector-specific opportunities to unlock value through nature-positive transitions,please see the Nature Positive Transitions:Sectors report

71、 series.Financial institutions survey areas of guidanceFIGURE 4Which areas would you like guidance from industry standard setters and think tanks on,to enable your organization to increase financing to the nature-positive transition?0PercentageBusiness case:quantification of risks/risk scenario anal

72、ysis(quantification of financial risk under different scenarios)Business case:quantification of opportunitiesFinancing needs from real economy companies(e.g.analysis of key trends/key sectors/technologies/themes to finance)Methodology to evaluate corporates nature-positive transition planand their p

73、erformance on natureCase studies of other financial institutions nature-specific projects/deals/transactionsCase studies of other financial institutions investment/lending/underwriting policies(e.g.how to define“nature-related green business”)Nature-related metric and target setting for financial in

74、stitutionsImpact and dependency assessmentFinancing/investment/insurance mechanisms/instruments/blueprints(e.g.nature-related financing products/services to offer)Understanding of sector-specific material risks and opportunities,and priority actions for real economy sectorsTarget setting for financi

75、al institutions irrespective of disclosures/targets set by real economyCase studies of other financial institutions stewardship on natureCase studies of other financial institutions governance structures for nature78%75%75%72%67%67%67%64%61%58%56%47%47%Source:World Economic Forum;Oliver Wyman.Nature

76、 Positive:Corporate Assessment Guide for Financial Institutions9Global initiatives such as the Taskforce on Nature-related Financial Disclosure(TNFD),the Glasgow Financial Alliance for Net Zero(GFANZ)and the World Wide Fund for Nature(WWF)are currently developing guidance for corporates and financia

77、l institutions to aid the development of nature strategies and transition plans.For instance,TNFD has already been adopted by financial institutions like Legal&General,ENBD,MUFG,UBS and Mirova.The publication of nature transition plans by corporates presents a significant opportunity for financial i

78、nstitutions to access the information they need to assess corporate efforts to transform operations and value chains.As such,this report advocates for the development of guidance on nature transition plans and highlights the key role offinancial institutions as consumers of this data.Corporate data

79、on nature is emerging Its crucial to recognize that nature transition plans are in earlier stages of maturity than climate transition plans.As such,financial institutions will,in the near term,rarely have access to complete and holistic nature transition plans from companies.Nevertheless,a number of

80、 companies are already disclosing nature-related information,and,as more companies disclose,data availability and quality will improve.Globally,12,545 companies reported on biodiversity to CDP in 2024,while 9,666 reported on water security,5,615 reported on plastics and 3,851 reported on forests.Thi

81、s number is expected to increase as companies get more experience developing and using nature-related data.As of October 2024,502 companies have signed up as TNFD adopters.This number is growing and has increased by 57%since January 2024.17 Working with initiatives like TNFD will familiarize compani

82、es with nature disclosure on a global scale.Companies that fall within the scope of the EUs CSRD or voluntarily choose to align with it will disclose a wide range of nature-related metrics and data.The EU Corporate Sustainability Due Diligence Directive(CSDDD),which took effect in July 2024,will fur

83、ther drive disclosure.Other standards such as the International Financial Reporting Standards(IFRS)and Sustainability Disclosure Standards set by the International Sustainability Standards Board(ISSB)will increase data availability for other jurisdictions over time.GSK,Holcim and Kering have publicl

84、y adopted freshwater targets with the Science Based Targets Network(SBTN)as part of the Science Based Targets initiative.Analyses of available nature data conducted by TNFD in March 2022 and again in October 2024 concluded that a significant amount of nature-related metrics and data already exist.18

85、,19 However,the lack of data on the extent of companies nature-related impacts represents the most urgent priority and the biggest pain point for market participants.The work being conducted by the Nature Positive Initiative on state-of-nature metrics aims to coalesce companies around key indicators

86、 for reporting and disclosure.Globally,12,545 companies reported on biodiversity to CDP in 2024,while 9,666 reported on water security,5,615 reported on plastics and 3,851 reported on forests.Nature Positive:Corporate Assessment Guide for Financial Institutions10Assessing companies on nature 1Assess

87、ing companies nature performance helps financial institutions align investments with sustainability goals and prepare for futureregulation.Nature Positive:Corporate Assessment Guide for Financial Institutions11Through consultations with global financial institutions across banking,insurance and asse

88、t management,the World Economic Forum has developed a set of nature-related indicators that financial institutions can use to assess their portfolio companies and clients.The information collected will also prepare financial institutions to comply with future nature-related regulation.While the repo

89、rt outlines what indicators financial institutions seek to assess,it does not provide guidance on how financial institutions should evaluate the corporate information provided per indicator.Given the profound interconnection between nature and climate,20 this approach is closely linked to existing c

90、limate transition plan assessment frameworks already in use by many leading financial institutions see Appendices(A2)for existing examples of climate assessment frameworks.Figure 5 outlines this perspective,evaluating how financial institutions aim to approach assessments of nature strategy and perf

91、ormance.While the nature assessment indicators are sector-agnostic overall,the relevance of the specific data points will vary according to the sector and the nature-related issues most material to a particular company.For example,targets and policies affecting freshwater use will most likely be mor

92、e relevant to a company in the agriculture sector than one in the education sector,as indicated by the sector-specific heatmap shown in Table 1.Eleven indicators for financial institutions to assess companies on natureFIGURE 51Material nature impacts and dependencies,and risks and opportunities2Natu

93、re metrics3Nature ambition4Nature targets5Strategy and actions6Policies7Governance8Incentives9Planned spend10Independent verification of actions11Supplier engagement planInterim indicatorsTarget-state indicatorsIndicators used by financial institutions to assess climate transition plansNatureClimate

94、Engagement planOffsetsCapital expenditure and climate research and developmentIncentivesGovernancePoliciesSector-specific actionsInterim and long-term GHG emission targets Ambition of targets(e.g.versus pathway)Greenhouse gas(GHG)emissions baseline and evolution of emissions from baselineStarting po

95、intsAmbition and targetsTransition credibility and achievability Source:World Economic Forum;Oliver Wyman.Nature Positive:Corporate Assessment Guide for Financial Institutions12Three dimensions of client nature transitioninformationFinancial institutions might find it helpful to consider three progr

96、essive dimensions of information along 11 indicators,which are based on approaches used today by financial institutions to assess climate transition plans:1.Company starting point:Financial institutions are eager to form a view on where companies stand on nature and how they are exposed to nature-re

97、lated risk.Many companies begin by assessing impacts and dependencies as well as associated risks and opportunities to determine materiality of nature-related issues,and have started to report on some key nature-related metrics such as water use.2.Company ambition and targets:Financial institutions

98、would like to see their portfolio companies and clients develop and articulateambitions and,over time,set targetsfor material nature-related issues.Thiswould provide important information on the degree of transformation companies are seekingto achieve and indicate the areas wherethey may require sup

99、port during the nature-positive transition.3.Transition credibility and achievability:Financial institutions would like to see proof points that demonstrate that nature ambitions and targets are being embedded into the companys activities,such as integration of nature into company policies and credi

100、ble action plans that are in place and on track.Thiswould help financial institutions to form a view on whether a companys targets are likely to be achieved and where opportunities might exist tosupport them.This report distinguishes between two types of indicators of information available for finan

101、cial institutions to assess companies on nature.These are:“interim”indicators and“target-state”indicators.Interim indicators consist of streamlined information categories that can be effectively used today,while target-state indicators represent information that financial institutions hope to see re

102、adily available in the near future when company maturity on nature has increased.In the following sections,this report will outline a practical approach financial institutions can follow to assess companies on nature using indicators presented in Figure 5.These sections will provide case studies and

103、 examples to illustrate thisconcept.Financial institutions would like to see proof points that demonstrate that nature ambitions and targets are being embedded into the companys activities.Nature Positive:Corporate Assessment Guide for Financial Institutions13CASE STUDY 1Legal&GeneralLegal&Generals

104、strategy is focused on both climate and nature.Alongside their commitment to net zero,Legal&General has made firm-wide commitments on nature and deforestation.Specifically,Legal&General is a signatory to the Finance for Biodiversity Pledge and supports the COP26(the 26th United Nations Climate Chang

105、e Conference)financial sector commitment to eliminate agricultural commodity-driven deforestation.In order to meet its commitments,Legal&General needs to understand its portfolio at an investee company level.Legal&General has reviewed its own asset portfolio and prioritized sectors with the greatest

106、 impacts and dependencies on nature for further action.These include:consumer staples,consumer discretionary,energy,materials,transport,utilities,financials,healthcare,information technology and industrials.Legal&Generals Nature Framework focuses on the five primary drivers of biodiversity loss as i

107、dentified by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services(IPBES).Legal&General has therefore chosen to develop policies for four sub-themes that target these drivers:water policy,natural capital management policy,deforestation policy and circular economy polic

108、y.Legal&General assesses its investee companies along thefollowing dimensions:Assessments:Legal&General expects companies to conduct materiality assessments and encourages adoption of the TNFD LEAP(locate,evaluate,assess and prepare)disclosures to promote standardized assessment outputs.For example,

109、as part of their Water Policy,Legal&General intends to understand companies contribution to ecosystem use change(marine and freshwater)and how these companies ensure access towater and sanitation(WASH).Ambitions and targets:Legal&General encourages companies to start setting targets that are time-bo

110、und,context-specific and science-based.Strategic development(including strategies,policies and mitigation actions):Legal&General expects these tobe developed in collaboration with Indigenous Peoples and local communities when they are affected.Accountability and governance mechanisms:For example,as

111、part of their Water Policy,Legal&General expects companies to share what monitoring processes are in place and whether there is board-level oversight of watermanagement.Engagement(including with actors in the value chain,trade associations,policy-makers and other stakeholders):For example,Legal&Gene

112、ral assesses how indirect and direct policy advocacy is aligned with the GBF and the goal of reducing impacts on water.Disclosure:This includes an expectation for,at a minimum,disclosure of the core metrics of TNFD.In order to assess companies on these indicators,as well as guide engagement with com

113、panies,Legal&General harnesses proprietary environmental,social and governance(ESG)tools that incorporate nature-related metrics.Legal&General has integrated biodiversity and nature considerations into its Climate Impact Pledge,both within quantitative scoring andqualitativeassessments.Legal&General

114、 engages with companies globally,targeting the top sectors with the most significant impacts on nature.Legal&Generals approach involves direct engagement and thorough collaboration with regulators and policy-makers to address these systemic market risks.In 2023,Legal&General had over 200 specific na

115、ture-related engagements.Companies that are failing to meet Legal&Generals standards can be divested from the portfolio.However,through Legal&Generals direct engagement,once-divested companies may also be reinstated if they meet the Climate Impact Pledge standard.One such example is China Mengniu Da

116、iry,which was reinstated after it published a deforestation policy pledging commitment to carbon neutrality by 2050 anddelivered on Legal&Generals red lines.In regions like Asia Pacific and Latin America,where biodiversity risks are high,standardized nature-related disclosures are scarcer than in Eu

117、rope,making it more difficult to assess companies environmental impacts.Inorder to scale their efforts and ensure more consistent andcomparable risk assessments across global markets,Legal&General continues to engage with policy-makers,standard-setters andstock exchanges toencourage better reporting

118、 standards(particularly as globalregulatory frameworks evolve).Source:Legal&General.Nature Positive:Corporate Assessment Guide for Financial Institutions14Interlink between indicators and transition planning guidance by TNFD,GFANZ and WWF and disclosure via CDPBOX 2TNFD,GFANZ and WWF are currently d

119、eveloping guidance aimed at financial institutions and real-economy companies on the preparation of their nature transition plans.The structure of the nature assessment indicators aligns with the assessment methods financial institutions employ when evaluating corporate climate transition plans and

120、is therefore derived from a practical outputperspective.Once companies publish their nature transition plans in accordance with the guidance from TNFD,GFANZ and WWF,and report relevant information through CDP,financial institutions can draw on that data.For further details,please review the Appendic

121、es(A3),which contains an overview of transition planning guidance and the connections between the indicators presented here and other relevant data points.A sector-wide perspective across financial institutionsThis report has been developed using information and insights from across the financial se

122、ctor.However,different financial institutions will have different levers available to support companies making progress in their nature-positive transitions,as well as different perspectives on the companies they engage with.21 For example,banks may adopt a long-term perspective when engaging with c

123、lients.On the other hand,investors with a significant or majority stake in a company will have much greater influence when requesting data and shaping nature transition plans than banks do.Insurers and reinsurers typically renew many policies on an annual basis.However,the insurance sector also has

124、long-term client relationships and typically assists clients in identifying and assessing nature risks.Regardless of financial activities,the components that financial institutions will assess are likely to be consistent,as all types of financial institutions may be interested in understanding compa

125、nies nature starting points,ambitions and targets,as well as the credibility and achievability of nature transition plans.All types of financial institutions may be interested in understanding companies nature starting points,ambitions and targets,as well asthe credibility and achievability of natur

126、e transitionplans.Nature Positive:Corporate Assessment Guide for Financial Institutions15Indicators to assess companies on nature2Nature assessment indicators help financial institutions assess and engage with companies,ultimately enabling a nature-positive real economy.Nature Positive:Corporate Ass

127、essment Guide for Financial Institutions162.1 Indicator 1:Material nature risks and opportunities,and impacts and dependenciesAlthough most companies are yet to develop nature transition plans,growing numbers have undertaken internal assessments along the lines of TNFD LEAP and SBTN to understand th

128、eir nature-related impacts and dependencies as well as associated risks and opportunities.Disclosing material impacts and dependencies identified through this assessment provides valuable information to financial institutions on starting points for companies.It additionally helps financial instituti

129、ons understand which areas require significant effort for the transition(for example,business sites with elevated impacts on water use or pollution),present risks(transition or physical)and business opportunities derived from new business models and technologies.Financial institutions seek the follo

130、wing information from companies when assessing this indicator:Availability of nature materiality assessment:Financial institutions seek to understand whether and how an assessment of nature-related issues has been conducted by the company using the TNFD LEAP approach or applying SBTN“Step 1:Assess”a

131、nd “Step 2:Prioritize”.Financial institutions additionally want to know whether the company has disclosed nature-related issues using a single or double(e.g.CSRD)materiality approach(TNFD General Requirement 1).A single materiality approach is associated with disclosure of information on how nature

132、impacts the organizations financial performance(“outside-in”).A double materiality approach is associated with disclosure of how the organization impacts nature(“inside-out”)and vice versa(“outside-in”).Scope of nature materiality assessment:Which business units,geographies,products and outputs have

133、 been considered and whether the assessment extends to the whole value chain,such as in TNFD General Requirement 219 Impacts and dependencies identified in the nature materiality assessment:Material impacts and dependencies of the company on nature,such as water removal and land use Magnitude of the

134、 impacts on nature expressed as high/medium/low Relevant location-and value chain-specific details,such as whether these issues are related to where the companys operations are located Although most companies are yet to develop nature transition plans,growing numbers have undertaken internal assessm

135、ents along the lines of TNFD LEAP and SBTN.This section will dive into each of the 11 indicators that financial institutions need to understand in order to assess companies nature performance and transition plans,and provide insights on how financial institutions are getting started today.17Nature P

136、ositive:Corporate Assessment Guide for Financial Institutions Nature-related risks(physical and transition-related)identified in the nature materiality assessment:Physical risks result from the degradation of nature(such as changes in ecosystem equilibria,including soil quality and species compositi

137、on)and consequential loss of ecosystem services on which a business model depends22(such as the loss of freshwater for a beverage company or loss of pollinators in agriculture).Transition risks stem from misalignmentof economic actors with actions aimed at protecting,restoring and/or reducing negati

138、ve impacts on nature.They come from five sources:policy,market,technology,reputation and liability risks.23 For example,companies in the oil and gas industry are exposed to significant transition risks,such as non-compliance with shifting environmental regulations.The timeframe in which these risks

139、are expected to manifest(short-,medium-and long-term)impacts risk.Nature-related opportunities identified in the nature materiality assessment:Business performance:Where the company has opportunities to develop its business model,reputation and resilience through increased resource efficiency,new pr

140、oducts/services,market access and valuation,or access to new capital flows Sustainability performance:Where the company has opportunities to optimize its activity through actions that preserve habitats and ecosystems,such as through ecosystem protection,restoration and regeneration or the sustainabl

141、e use of natural capitalExisting frameworks that companies may beusing:TNFD:LEAP is an integrated approach for identifying and assessing nature-related issues.It is designed for use by organizations of all sizes across all sectors and geographies.24 TNFD has also published recommendations on the dis

142、closure of nature-related impacts and dependencies,and risks and opportunities.25 SBTN:The SBTN Framework Step 1:Assess and Step 2:Prioritize offer a prescriptive approach to screening nature impacts in the companys direct operations and upstream,assessing where to act first and which locations and

143、economic activities to include within targetboundaries.26 Global Reporting Initiative(GRI):This presents a four-step approach to identifying and assessing material impacts.27 CSRD/European Sustainability Reporting Standards(ESRS):This provides guidance on conducting double materiality assessments,in

144、cluding steps for understanding the context,identification and assessment of impacts,risks and opportunities,and their subsequentdisclosure.28 Nature benchmarking initiatives such as Nature Action 10029 and the World Benchmarking Alliance(WBA)30 state expectations around a companys assessment of its

145、 nature-related issues.Nature Positive:Corporate Assessment Guide for Financial Institutions18How financial institutions are getting started:Financial institutions already have access to information from companies across multiple sectors that are increasingly assessing and disclosing their material

146、nature-related issues.This shift is driven by the EUs CSRD and increasing commitments to disclose in alignment with TNFD.However,the lack of a universally accepted definition of or standardized methodologies for materiality leads to variability in disclosures,resulting in uneven structure and granul

147、arity in reporting across sectors and geographies.Certain sectors,particularly those with well-known nature impacts and dependencies including mining and metals,chemicals and agriculture are more advanced in their ability to assess and disclose material nature-related issues.These companies,to varyi

148、ng extents,are already capable of geographically locating their nature impacts and dependencies.This is more feasible for owned assets such as mines,plants,farms and factories.However,upstream and downstream impacts and dependencies remain challenging.For example,Anglo American conducted an assessme

149、nt in 2023 using a qualitative approach to evaluate nature-related issues as well as associated timeframes.The results highlighted that access to water and tailings management are material issues for the company under a double materiality approach.31 For financial institutions,such information provi

150、des valuable insights on where the company stands today,forming the basis for further actions.However,since not all companies will have performed materiality assessments,financial institutions can use tools such as ENCORE32 to generate heatmaps and assign sector average ratings for impacts and depen

151、dencies(e.g.low,medium and high).Companies can then use these ratings as proxies for materiality assessments.Similarly,sector-level emissions data was used as a proxy for climate target-setting purposes when company-level emissions data was still scarce.This allows financial institutions to pinpoint

152、 sectors where significant nature-related issues are prevalent and evaluate sector averages for companies before more robust data becomes available.Table 1 presents a heatmap detailing material issues by driver and sector.Certain sectors,particularly those with well-known nature impacts and dependen

153、ciesincluding mining and metals,chemicals and agriculture are more advanced in their ability to assess and disclose material nature-related issues.Nature Positive:Corporate Assessment Guide for Financial Institutions19Gross output weighted sector heatmap based on ENCORE data TABLE 1Impact and depend

154、ency ratings of selected sectorsGross output weighted and ranked by impact and dependency ratingsFishing Agriculture Forestry Mining and quarryingAccommodation and food service activitiesWater supply and waste managementConstructionElectricity,gas steam and air conditioning supplyEducation Human hea

155、lth and social work activitiesManufacturing Transport and storageISIC Divisions code03010205-0955-5636-3941-43358586-8810-3349-53ImpactsArea of freshwater useArea of land useArea of seabed useDisturbances(e.g.noise,light)Emissions of GHGEmissions of non-GHG air pollutantsEmissions of toxic pollutant

156、s to water and soilEmissions of nutrient pollutants to water and soilGeneration and release of solid wasteIntroduction of invasive speciesOther abiotic resource extractionOther biotic resource extraction(e.g.fish,timber)Volume of water useDependenciesAir filtrationBiological controlBiomass provision

157、ingEducation,scientific and research servicesFlood mitigation Genetic materialGlobal climate regulationLocal(micro and meso)climate regulationNoise attenuation Nursery population and habitat maintenanceOther provisioning services animal-based energyOther regulating and maintenance service Dilution b

158、y atmosphere and ecosystemsOther regulating and maintenance service Mediation of sensory impacts(other than noise)PollinationRainfall pattern regulationRecreation-related servicesSoil and sediment retentionSoil quality regulationSolid waste remediationSpiritual,artistic and symbolic servicesStorm mi

159、tigationVisual amenity servicesWater flow regulationWater purificationWater supplyRating:Low HighNature Positive:Corporate Assessment Guide for Financial Institutions20Gross output weighted sector heatmap based on ENCORE data(continued)TABLE 1Impact and dependency ratings of selected sectorsGross ou

160、tput weighted and ranked by impact and dependency ratingsArts,entertainment and recreationAdministrative and support service activities Wholesale and retail trade Professional,scientific and technical activitiesReal estate activitiesPublic administration and defenceActivities of households as employ

161、ersInformation and communicationOther service activitiesFinancial and insurance activitiesActivities of extraterritorial organizationsISIC Divisions code90-9377-8245-4769-75688497-9858-6394-9664-6699ImpactsArea of freshwater useArea of land useArea of seabed useDisturbances(e.g.noise,light)Emissions

162、 of GHGEmissions of non-GHG air pollutantsEmissions of toxic pollutants to water and soilEmissions of nutrient pollutants to water and soilGeneration and release of solid wasteIntroduction of invasive speciesOther abiotic resource extractionOther biotic resource extraction(e.g.fish,timber)Volume of

163、water useDependenciesAir filtrationBiological controlBiomass provisioningEducation,scientific and research servicesFlood mitigation Genetic materialGlobal climate regulationLocal(micro and meso)climate regulationNoise attenuation Nursery population and habitat maintenanceOther provisioning services

164、animal-based energyOther regulating and maintenance service Dilution by atmosphere and ecosystemsOther regulating and maintenance service Mediation of sensory impacts(other than noise)PollinationRainfall pattern regulationRecreation-related servicesSoil and sediment retentionSoil quality regulationS

165、olid waste remediationSpiritual,artistic and symbolic servicesStorm mitigationVisual amenity servicesWater flow regulationWater purificationWater supplyRating:Low HighSource:World Economic Forum;Oliver Wyman;ENCORE.(2024).ENCORE:Exploring Natural Capital Opportunities,Risks and Exposure.Nature Posit

166、ive:Corporate Assessment Guide for Financial Institutions21CASE STUDY 2INGING is integrating nature aspects into its sustainability strategy,with the aim of complementing the existing Terra approach,which quantifies and sets science-based targets for key sectors in line with its climate goals.This e

167、nvironmental approach also considers social aspects,with the aim of working holistically across these interdependent factors.INGs nature approach is aligned with its climate approach,with the aim to contribute to halting and reversing nature lossthrough:Managing nature risks and impacts Steering the

168、 portfolio and engaging with clients to halt and reverse nature loss Promoting nature mainstreaming internally and externallyScoping:The first steps in INGs approach included the assessment and scoping of the most material nature aspects within its portfolio.This assessment resulted in a list of ind

169、ustries with an expected high impact on nature in their operations and supply chains,high dependency on nature in their operations or high likelihood of having operations in countries with high significance to nature.Based on these insights,ING is first focusing on the most material sectors:farming

170、and fishing,food and beverage processing,mining,and upstream oil and gas.Sector-specific assessment:ING engages with clients in high-impact sectors based on an analysis of key environmental factors affecting their sector.This includes assessing carbon emissions,land-use change(deforestation and conv

171、ersion),water use,pollution and biodiversity/ecosystems.To initiate client-level nature assessments,ING aims to collect publicly available data of clients in material sectors and assess a companys baseline,ambition,targets,governance and implementation of mitigation actions towards nature.Building o

172、n the framework of its climate assessment approach,ING aims to use these nature assessments to strengthen client dialogue,identify and manage long-term risks and support clients in nature transition.Accountability:INGs due diligence is applied through the Environmental and Social Risk(ESR)framework,

173、which includes a standalone,cross-sectoral human rights policy.Additionally,ING takes a risk-based approach to assess the relevant deforestation and ecosystem conversion risks,based on a set of criteria as further detailed in its deforestation stance.These criteria aim to influence and encourage 1)n

174、o-deforestation and no-ecosystem conversion commitments,and 2)targets towards full traceability in supply chains.Additionally,through its ESR framework,ING also conducts relevant checks in its transactions to determine whether free,prior and informed consent(FPIC)has been obtained and labour rights

175、respected.Measurement and monitoring:To quantify and monitor how INGs financing activities impact and rely on ecosystem services,the bank applies varying levels of data granularity.Asset-level financing is subject to the Equator Principles,which prescribe detailed ecosystem and social analyses for t

176、ransactions in scope.To link INGs knowledge of monitoring ecosystems and drive best practice across all nature-related assessments,the bank is working closely with the Equator Principles and United Nations Environment Programme Finance Initiative(UNEP FI)through a range of initiatives.Scientific pat

177、hways and target setting:ING is developing knowledge on scientific pathways for key nature-related aspects,such as land-use change and water.Drawing on the work of the GBF,National Biodiversity Strategies and Action Plans(NBSAPs),Science Based Targets Network(SBTN),and Planetary Boundaries,ING is id

178、entifying sector-level nature pathways,which it is testing at a sector level.This will support how the bank steers its loan book in line with global goals for nature and guides the next steps in setting targets for nature.Nature Positive:Corporate Assessment Guide for Financial Institutions22As a ne

179、xt step,financial institutions can drill down on specific sectors of the heatmap and determine the exposure of clients to dependencies and impacts of specific financial or corporate assets also called“asset tagging”.33 Based on these findings,financial institutions can prioritize engagement with com

180、panies in sectors recognized for their significant impacts or dependencies on nature.This engagement should focus on understanding the assessments that have been conducted to identify material nature impacts and dependencies,as well as on understanding the potential financial implications for the bu

181、siness.For example,financial institutions might want to discuss how companies in the agricultural sector would respond in a water stress scenario that would impact food supply.Metric typesTABLE 2Impact and dependency metricsRisk and opportunity metrics Impact driver metrics capture how companies ope

182、rations are impacting nature and are categorized based on the five drivers of nature change.35 Examples of impact driver metrics include the extent of land use change in square kilometres(km)(TNFD)or total use of land area in metres or hectares(CSRD).Metrics for the state of nature capture changes t

183、o the ecosystems impacted by the companies operations and help assess whether a companys actions are contributing to natures recovery or deterioration.Terrestrial ecosystem conditions(Nature Positive Initiative36)are an example of such metrics.State of nature metrics are complementary to impact driv

184、er metrics.Dependency metrics capture how a companys activities depend on ecosystem services(e.g.use of water).These metrics assess the level of risk or opportunity within theorganization.37 These might be opportunity metrics for example,the value of operational cost savings associated with nature-r

185、elated management(TNFD)or risk metrics for example,the anticipated financial effects of material risks and opportunities arising from biodiversity-and ecosystem-related impacts and dependencies(CSRD).Table 3 shows a set of nature metric disclosures that are commonly requested by leading initiatives

186、and regulation.The table highlights that a high level of consensus has already been reached in initiatives and regulation regarding the metrics to disclose.Financial institutions seek the following information from companies when assessing thisindicator:Location-specific key metrics can be used to q

187、uantify the companys impacts and dependencies on material nature-related issues.Leading initiatives such as CSRD,TNFD,CDP or GRI have published core metrics for nature and biodiversity as well as interoperability mappings of these metrics,increasing financial institutions ability to compare and benc

188、hmark companies within and across sectors.Location-specific key metrics can be used to assess a companys risks and opportunities stemming from identified impacts anddependencies.Historical trends for key nature metrics,such as Ecoregion intactness scores over previous years,can be used to assess a c

189、ompanys performance over time.Existing frameworks that companies may beusing:CSRD/ESRS:Disclosure standards provide requirements on disclosure for nature-relatedmetrics.38 As location-specific data becomes available,nature metrics will increasingly be used to evaluate the scale of a companys impact

190、and dependency on nature.2.2 Indicator 2:Nature metricsAs location-specific data becomes available,nature metrics will increasingly be used to evaluate the scale of a companys impact and dependency on nature,and will serve as benchmarks for both measuring companies progress over time and comparing c

191、ompanies.However,like carbon emissions,it will take time for companies to reliably quantify progress benchmarks across the entire value chain.Nature is multidimensional and,as such,there is no single metric that captures its complexity.Nature change is driven by five impact drivers climate change,la

192、nd,freshwater or ocean use change,resource use or replenishment,pollution or pollution removal,and invasive species introduction or removal34 that financial institutions anticipate companies will increasingly report.Each impact driver can be associated with several metrics like water,soil or non-gre

193、enhouse gas(GHG)air pollutants,and companies may report metrics for the nature loss and changes in ecosystem services that result from impact drivers.For dependencies,companies may report the metrics for the changes in the state of nature or ecosystem services on which they depend.Nature Positive:Co

194、rporate Assessment Guide for Financial Institutions23 TNFD:TNFD provides guidance for disclosure of specific nature-related metrics.There are two categories of disclosure metrics:1)core metrics and 2)additional metrics.Both include metrics for all sectors as well as sector-specific metrics.39 CDP:Th

195、e CDP integrated questionnaire used for environmental disclosure requires companies to provide nature-related metrics through its modules on water security,forests,plastics andbiodiversity.40 GRI:In the topical disclosure standards,the GRI requires companies to report a range of metrics on biodivers

196、ity,water and effluents,materials(recycling)and waste.41 Nature Positive Initiative:This organization proposes a set of metrics to evaluate changes in the state of nature.There are ongoing efforts to explore how state-of-nature metrics can be integrated into respective frameworks of initiatives such

197、 as SBTN or TNFD.42 The World Business Council for Sustainable Development(WBCSD):This organization is developing a nature metrics portal collating sector-relevant metrics from global and sector-specific sources.43How financial institutions are getting started:Data that financial institutions can us

198、e to start assessing companies is already accessible.Globally,12,545 companies have reported through the integrated CDP questionnaire on biodiversity in 2024.Meanwhile,there were 9,666 responses on water security,5,615 on plastics and 3,851 on forests.Respondents provided data on metrics such as ava

199、ilability of water-,plastics-or forest-related activities.44 Some leading financial institutions developing their initial company nature assessments use CDP data as a foundational resource and are preparing their frameworks on that basis until data availability improves.Despite the CSRD omnibus prop

200、osal and related consequences,such as a decreased scope of companies disclosing on CSRD,availability of corporate data on nature is expected to improve from 2025 onwards,as both EU companies and global companies with significant operations in the EU will soon be required to disclose nature-related m

201、etrics under the CSRD.Coupled with this is the increasing number of companies globally adopting the TNFD,which in turn is increasing the number of companies disclosing on abroader range of nature-relatedmetrics.CSRD disclosure timelineFIGURE 6CSRD is expected to increase nature-related metrics discl

202、osureCSRD omnibus proposed changes to timelines(as of March 2025)Companies required to disclose under CSRDWavesCompanies being alreadysubject to Non-Financial Reporting Directive(NFRD)1Listed SME33rd wave2027Non-EU groups generating turnover of more than 150 million 450 million in the EU and at leas

203、t one branch/subsidiary44th wave20291st wave2025Large companies2 meeting at least two of thefollowing criteria:50 million in turnover 25 million in total assets 250 employees 1,000 employees2nd wave2026Removed from the scopeMoved to 2028Notes:Reporting on the preceding financial year;1.Companies sub

204、ject to the NFRD are large public-interest companies with more than 500 employees;2.EU-based companies,including EU subsidiaries of non-EU groups;3.SME listed on EU regulated market;4.Additional criteria applies to subsidiaries(large or listed),branches(more than 40 million net turnover);all thresho

205、lds must be met on two consecutive balance sheet periodsSource:Oliver Wyman.However,financial institutions can already start requesting key priority nature-related metrics from clients to inform climate and environment risk assessments.An analysis of the metrics mandated for disclosure under various

206、 standards and initiatives reveals that key metrics are consistently required across most standards and initiatives(including water consumption,emissions to water by pollutants or total land area in use).Of the 67 identified CSRD pollution,water,biodiversity and waste metrics,six overlap with three

207、other disclosure standards,initiatives or platforms(TNFD,CDP and GRI),18 overlap with two other standards and 14 overlap with one other standard.Financial institutions can start to engage with companies and CDP,acting as disclosure platforms to collect this information,regardless of whether these co

208、mpanies are yet subject to specific disclosure requirements.Nature Positive:Corporate Assessment Guide for Financial Institutions24CSRD nature metrics and overlaps with at least two other standardsTABLE 3Source:World Economic Forum;Oliver Wyman.CSRD nature metrics with overlaps with at least two oth

209、er standardsCSRDTNFDCDPGRIPollutionEmissions to air by pollutant Microplastics generated and usedMicroplastics generatedMicroplastics usedTotal amount of substances of concern that are generated or used during production or that are procured(breakdown by main hazard classes of substances of concern)

210、Quantitative information about anticipated financial effects of material risks and opportunities arising from pollution-related impacts Operating expenditures(OpEx)in conjunction with major incidents and deposits(pollution)Capital expenditures(CapEx)in conjunction with major incidents and deposits(p

211、ollution)Provisions for environmental protection and remediation costs(pollution)Water Total water consumptionTotal water consumption in areas at water risk,including areas ofhigh water stressTotal water withdrawalsTotal water dischargesQuantitative information about anticipated financial effects of

212、 material risks and opportunities arising from water and marine resources-related impacts BiodiversityTotal use of land areaTotal sealed areaNature-oriented area on siteNature-oriented area off siteQuantitative information about anticipated financial effects of material risks and opportunities arisi

213、ng from biodiversity-and ecosystem-related impacts and dependencies WasteThe absolute weight of secondary reused or recycled components,secondary intermediary products and secondary materials used to manufacture the undertakings products and services(including packaging)Total waste generatedWaste di

214、verted from disposal,breakdown by hazardous and non-hazardous waste and treatment typeWaste directed to disposal,breakdown by hazardous and non-hazardous waste and treatment typeQuantitative information about anticipated financial effects of material risks and opportunities arising from resource use

215、 and circular-economy-related impacts Metrics highly aligned Metrics closely aligned Metrics partially alignedNature Positive:Corporate Assessment Guide for Financial Institutions25A companys nature ambition represents its intended contribution to the nature transition,clarifying the outcomes it wan

216、ts to achieve,where it will focus and the role it wants to play.A nature ambition is ahigher-level indicator compared to nature targets.Financial institutions seek the following information from companies when assessing this indicator:Overall objectives and priority areas the company aims to address

217、,linked to the companys impacts and dependencies,and risks andopportunities Alignment of the ambition with the 2030 targets and 2050 goals of the GBF Span of the business model and value chain considered,including location of direct operations and activities by sector,value chain and geography Perio

218、d in which the ambition is to be achieved (e.g.2030,2050)Links to climate ambition where relevant2.3 Indicator 3:Nature ambition CASE STUDY 3Swiss ReSwiss Re aims to support clients with tools to assess data on nature and climate-related dependencies and risks.To support clients in understanding and

219、 mitigating their nature risks,Swiss Re provides services designed to support nature-related risk assessment and reporting capabilities.These include data and analytics services that can identify locations of high nature and climate risk and offer bespoke,actionable risk recommendations.For example,

220、as part of its service offering for reinsurance and corporate clients,Swiss Re provides an interactive online platform called the Risk Data&Services(RDS)platform.This platform combines climate risk assessments with nature risk data and natural catastrophe risk profiles of client assets or supply cha

221、ins.Swiss Re supports clients in responding to their regulatory reporting requirements,and approximating the role of climate change and nature dependency in their assets and business models.Furthermore,the internationally patented Biodiversity and Ecosystem Services(BES)Index provides peer-reviewed

222、data on the capacity of 10 different BES categories(e.g.water security,contribution of wild pollinators,water quality and soil fertility)at a resolution of 1 km across the globe.The platform combines the BES Index with ENCOREs materiality ratings for sector dependency and impact on nature.To complem

223、ent the analysis using the BES Index,clients can further analyse their assets and supply chains against the biodiversity datasets available through the Integrated Biodiversity Assessment Tool(IBAT)namely key biodiversity areas,protected areas and the IUCN Red List ofThreatenedSpecies.These services

224、and capabilities can support clients towards the goal of conducting multi-location comparisons across portfolios(e.g.for insurers)or suppliers(e.g.for corporates).Source:Swiss Re.Nature Positive:Corporate Assessment Guide for Financial Institutions26 Numerous companies across various sectors,particu

225、larly large ones,have well-articulated nature ambitions.Existing frameworks that companies may beusing:TNFD:Draft guidance on nature transition plans includes a component on nature ambitions in the nature transition plan disclosure section.45 Nature Strategy Handbook:Building on the ACT-D(assess,com

226、mit,transform and disclose)framework,the Nature Strategy Handbook provides guiding questions,recommendations and resources on how to develop anatureambition.46 Accountability Framework Core Principles:This provides a high-level framework for setting supply chain goals,taking action and assessing pro

227、gress in efforts to make supply chains in agriculture and forestry more ethical.47 Capitals Coalitions Beta Framework for Integrated Decision-making:This outlines seven required steps to integrating the value ofcapital(natural,social,human,produced)intodecision-making.48 Nature benchmarking initiati

228、ves state expectations around the nature ambitions of companies such as Nature Action 100.49How financial institutions are getting started:Numerous companies across various sectors,particularly large ones,have well-articulated nature ambitions.Companies like rsted,GSK and Holcim are good examples,ha

229、ving expressed their aim to contribute to the nature-positive movement and the goals of the GBF.While science-based or science-backed nature target setting through SBTN and similar pilots is still under development,overarching nature ambitions for instance,those that pledge achieving the nature-posi

230、tive goal by 2050 are more common but vary widely.They continue to help financial institutions understand company commitments to nature and the relative maturity of those commitments.2.4 Indicator 4:Nature targetsA companys nature targets are a more detailed and quantified specification of a company

231、s ambition within a clear timeframe.Ideally,target statements include interim targets that indicate short-and medium-term milestones and the pathway to long-term targets.Targets can be set in line with a mitigation hierarchy(such as AR3T,which stands for avoid,reduce,restore and regenerate and trans

232、form)at site and project levels to ensure companies prioritize actions that mitigate nature impacts in the first instance where possible.An initiative by SBTN provides a framework and guidance for settingscience-based targets for nature,helping companies align their environmental goals with scientif

233、icevidence.Aligning targets with scientific evidence is not yet mainstream given inherent methodological challenges however,it has various advantages,such as increased investor confidence and resilience.50 Financial institutions seek the following information from companies when assessing this indic

234、ator:If the targets are science-based and developed in line with available guidance such as SBTN or validated by SBTN If the targets are specific,measurable,achievable,relevant and time-bound(SMART)and location-or ecosystem-specific If the targets encompass all material impacts(such as in the case w

235、here a companys water extraction is having a material impact on an ecosystem)and dependencies this informs whether financial institutions might expect to have a water withdrawal and consumption(m3)target in place for that location If the targets are developed in line with amitigation hierarchy(such

236、as AR3T)Which parts of the companys business model and value chain are covered If the targets are set for short-,medium-and long-term periods for example,ESRS defines these periods analogously to the periods used by financial institutions in their financial statements for short-term(up to five years

237、),medium-term andlong-term(more than five years)51 If the targets are aligned with national and international policy objectives on nature and biodiversity,such as GBF,countries NBSAPs or other policy commitments and regulations27Nature Positive:Corporate Assessment Guide for Financial InstitutionsCD

238、P questionnaire 2024 nature targetsFIGURE 7Water targetPlastic targetForest target6543,4802,454YesSource:Carbon Disclosure Project(CDP).In light of evolving guidance available in this area,financial institutions will primarily want to understand whether their portfolio companies have set nature targ

239、ets and whether they have plans to refine targets or increase ambition once more concrete guidance has been established.SBTN is developing technical science-based target guidance,with an initial cohort of 17 companies participating in the first year-long pilot programme.This programme focuses on set

240、ting SBTN targets for land(e.g.no conversion of natural ecosystems,land footprint reduction and landscape engagement)and freshwater(e.g.quantity and quality),with ocean targets forthcoming.Of the companies in the initial cohort,60%have received SBTN validation,and three companies GSK,Holcim and Keri

241、ng have publicly disclosed their targets to date.More companies will follow suit.Despite challenges in data availability(e.g.the need for basin-specific data or data on nutrient concentrations),150 additional companies are now preparing to set their own science-based targets.57Beyond organization-wi

242、de targets,companies may be able to set smaller-scale targets on a project or site level,in response to a specific nature impact.These also act as indicators of a companys willingness to take measurable action.Financial institutions can encourage companies that have already identified material natur

243、e-related issues and plans to take action to translate these into concrete targets.Examples of SBTN-aligned targets include:Water:Reduce its freshwater withdrawals in its direct operations in the Moctezuma basin by 39%to 90,808 m3 per year by 2030 compared to an average 2022-2023 baseline(Holcim);re

244、duce its freshwater net withdrawal in its direct operations in the Upper Godavari basin in India by 100%by 2030 compared to an average 2018-2022 baseline(GSK)58 Land:Reduce absolute agricultural land footprint by 3%by 2030 from a 2022 baseline(Kering)59 In light of evolving guidance available in thi

245、s area,financial institutions will primarily want to understand whether their portfolio companies have set nature targetsExisting frameworks that companies may startto use:SBTN:The network provides guidance that real-economy companies can use to set targets and take action on freshwater and land(wit

246、h ocean targets forthcoming).52 TNFD:The“prepare”phase of the LEAP approach includes guidance on setting targets in response to nature-related issues,which is consistent with the SBTN framework.53 Mitigation hierarchy:This provides guidance on prioritizing targets and actions that reduce impacts on

247、nature according to the hierarchy(avoid,reduce,restore,offset,contribute).54 Nature benchmarking initiatives state expectations around the nature targets of companies like Nature Action 10055 and the WBA.56Insights from current data Companies are increasingly setting targets on nature.According to d

248、isclosures through CDP,companies already have targets related to plastic(2,454),water(3,480)or forest(654).Nature Positive:Corporate Assessment Guide for Financial Institutions28A companys nature strategy and actions demonstrate its approach to aligning business activities and operations with its na

249、ture ambition and targets.They are critical for helping financial institutions to understand whether nature ambitions are feasible and backed by credible roadmaps.Actions identified should be aligned to the results of the companys assessment of its nature-related issues(Indicator 1)and should follow

250、 amitigation hierarchy,such as the AR3T developed by the SBTN,60 prioritizing steps from“avoid”to“transform”(see Figure 8).Nature strategy and action reports previously published by the World Economic Forum61 provide more details onthisapproach.AR3T frameworkFIGURE 8Restore and regenerateRecover the

251、 state of natureTransformContribute to system-wide changeAvoidPrevent impacts on nature entirelyReduceWhen prevention is not possible,minimize impactsSource:Science Based Targets Network(SBTN).2.5 Indicator 5:Strategy and actionsNature Positive:Corporate Assessment Guide for Financial Institutions29

252、Financial institutions seek the following information from companies when assessing this indicator:The specific actions identified by the company to achieve its nature ambition and targets across the mitigation hierarchy,within and outside of the business value chain,such as:Actions to avoid impacts

253、 on nature loss,such as avoiding unsustainable or illegally harvested seafood and other marine resources in supply chains Actions to reduce impacts on nature loss,including reducing nutrient runoff by decreasing fertilizer use Actions to restore and regenerate so that nature can recover,such as incr

254、easing soils ability to retain water and sequester carbon through regenerative farming practices(fertility management,mulching)Actions to transform underlying systems to address the drivers of nature loss,including harnessing supply chains to transform productive systems in line with science-based t

255、argets for nature(such as ensuring suppliers provide deforestation and conversion-free products)Whether the companies are on track or whether their action plans need corrective action Timelines for the actions(for example,three to five years)The extent to which these actions may be effective in redu

256、cing nature loss and restoring nature,such as:Extent to which these have been aligned to sectoral priority actions(see in Box 1 onsector reports and Figure 9 on sector priority actions)Extent to which these contribute to GBF 2030 targets and 2050 goals as well as countries NBSAPs Comparison of actio

257、ns identified by the company with actions identified by other companies in the sector Expected impact of the action on nature andmeasures of success Whether companies engage with landscape stakeholders and rights holders(such as local communities and Indigenous Peoples)Existing frameworks that compa

258、nies may beusing:Nature Strategy Handbook:Building on the ACT-D framework,the Nature Strategy Handbook provides guiding questions,recommendations and resources for developing a nature strategy.62 Sector Actions Towards a Nature-Positive Future:This framework outlines sector-specific priority actions

259、 that companies should take to transform their business and meet the ambitions they set out as part of a credible nature strategy,including the Forums Nature Positive Transitions reports.63 TNFD:The Discussion Paper on Nature Transition Plans provides guidance on what a nature transition plan should

260、 include under its implementation strategy.64 WWF:The WWF report Catalysing Change:The Urgent Need for Nature Transition Plans includes strategy and actions as components in its transition planning guidance.65 TPT:The advisory paper The Future for Nature in Transition Planning provides guidance on h

261、ow nature can be included in transition planning.66 GFANZ:Voluntary guidance,which is currently in consultation,provides insight on integrating nature into net-zero transition plans.This is supplementary to the Financial Institution Net-zero Transition Plans(2022)guidance.67 Nature benchmarking init

262、iatives state expectations around companies nature strategy and actions,such as Nature Action 10068 and WBA.69How financial institutions are getting started:Although nature transition plans are not currently common,many companies have disclosed strategies and initiatives aimed at reducing their impa

263、cts and dependencies on nature,which 30Nature Positive:Corporate Assessment Guide for Financial InstitutionsCASE STUDY 4ABN AMRO In its recently published Nature Statement,ABN AMRO committed to“using and expanding its influence to reduce negative impact and enhance positive impact on nature in order

264、 to play its role in halting and reversing biodiversity loss by2030”.To achieve this,ABN AMRO will engage with and incentivize its clients to address their negative impact on nature,such as by halting deforestation in value chains or adopting circular practices.ABN AMRO identified two key sectors fo

265、r initial priority focus in its lending activities:the built environment(corporate lending,mortgages)and agriculture.The built environment focus is based on ABN AMROs relatively largeexposure.The agriculture focus is based on the sectors relatively high impact on nature compared to other sectors in

266、ABN AMROs portfolio(contributing 26%of ABN AMROs biodiversity impact).ABN AMRO selected nature-related metrics for dairy and arable farming within the agriculture sector,and works to create incentives farmers to improve impacts from their farming practices on nature(beyond existing incentives such a

267、s repayment pauses).A materiality assessment will direct ABN AMRO to identify additional focus sectors in the coming years.Nature is a central part of the assessments ABN AMRO conducts to evaluate the sustainability performance of corporate clients with over 1 million euros in lending.Clients are re

268、viewed periodically or during onboarding.The assessment questions used are based on the 10 Generic Principles of ABN AMRO,which include the following applicable principles:Clients are aware of their impact on biodiversity,water,air and soil,and take appropriate measures to prevent biodiversity loss

269、and pollution.Clients are aware of how their business model depends on ecosystem services(e.g.resources,pollination)and take measures to preserve these services.Clients take measures to promote circularity and reduce the use of virgin material and waste(e.g.through design,recycling,lifetime extensio

270、n)if applicable.The outcome of this sustainability assessment serves as the basis for further engagement and strategic discussion,depending on the clients level of compliance.A dedicated team conducts additional validation covering the sustainability assessment outcome,the 10 Generic Principles,the“

271、exclusion list”and the fulfilment of specific requirements,(e.g.zero deforestation in sensitive ecosystems in the clients supply chain)for lending clients with high sustainability risk.This validation can,for example,lead to extra monitoring,specified conditions and/or client engagement,and influenc

272、e the onboarding decision.Sector-specific guidance for banking teams as well as upskilling for employees working specifically with clients in key sectors impacting biodiversity aim to improve the sustainability assessment process and enhance clientdialogues.Source:ABN AMRO.Sector-specific considerat

273、ions:While priority actions will vary by company across sectors and even within a sector(given differing business models and operational footprints),they can broadly be identified at a sectoral level.For example,mining companies have a material impact and dependency on water and would be expected to

274、 avoid and reduce water abstraction in operations and instead focus on good water stewardship.76 Priority actions for the chemicals sector include focusing on improving water stewardship,expanding circularity and reducing GHG through(for example)bio-based feedstocks,in line with the top drivers of n

275、ature loss in that sector:water use,pollution and GHG.77The Sector Actions report series,published by the World Economic Forum,WBCSD and Business for Nature,delineates priority actions for each sector that companies can use to start unlocking opportunities across operations and value chains and redu

276、ce impact on nature.Figure 9 summarizes priority actions for sectors from across 16 reports published to date.These actions have been identified through research and inputs from experts across each sector.financial institutions can use to assess companies strategies and actions on nature.For example

277、,several mining companies are improving traceability across the value chain to better track and communicate information about the components of products and materials throughout the production process,promoting the adoption of good practices.70 This includes Teck Resources digital product passport p

278、ilot with germanium,71 Rio Tintos START sustainability label72 for aluminium or De Beers Groups Tracr diamond blockchain solution.73 Additionally,chemicals companies are increasingly shifting towards alternative feedstocks,such as in bio-based fuels.74 In the automotive sector,many companies,includi

279、ng Volvo,Mercedes-Benz,Renault,Stellantis and tire companies such as Michelin,are working towards reducing resource use by incorporating reused,repaired,recycled and renewable materials into new models or fleets by 2030.75 Financial institutions can further engage with clients and portfolio companie

280、s to understand the actions they have committed to.Nature Positive:Corporate Assessment Guide for Financial Institutions31Sector priority actions for 16 sectorsFIGURE 9Agri-food Avoid the degradation and accelerate the regeneration of land and ecosystems.Reduce freshwater use.Avoid,reduce and remove

281、 GHG emissions across the entire value chain.Promote circularity and innovate products,practices and technologies.Collaborate,educate,support and advocate across your supply chain.Built environment Avoid further terrestrial,freshwater and marine habitat conversion.Prioritize re-use and retrofitting

282、over demolition.Select materials with nature in mind and invest in circularity.Apply nature-based solutions.Chemicals Increase efficiency in the manufacturing process and expand the use of renewable energy to reduce GHG.Improve water stewardship by establishing trust,water management strategies and

283、practices,remediating water stress in supply chains and replenishing watersheds.Source responsibly,improve supply chain traceabilityand transparency,and explore switchingto sustainably sourced bio-based orrecyclable materials.Support nature conservation and restoration,andadvocate for policy and reg

284、ulatory changes thatprotect nature.Innovate product portfolios,expand circularity andimprove customer education on product use anddisposal.Energy Embrace decarbonization to mitigate climate impacts.Manage water resources sustainably.Conserve and restore ecosystems and habitats.Commit to circular mod

285、els.Partner and advocate beyond the value chain.Financial services Embrace decarbonization to mitigate climate impacts.Manage water resources sustainably.Conserve and restore ecosystems and habitats.Commit to circular models.Partner and advocate beyond the value chain.Fashion and apparel Avoid and r

286、educe the use of high-impact or uncertified materials.Avoid and reduce the use of hazardous chemicals across supply chain.Avoid and reduce freshwater use through sustainable water management.Restore degraded land and move towards regenerative agricultural practices.Transform business model and build

287、 for circularity.Construction materials cement and concrete Improve water management across the value chain.Adopt technologies and manufacturing practices toreduce GHG and airborne emissions.Continue and strengthen reclamation and rehabilitation approaches as well as biodiversity management of quarr

288、ies,and improve land stewardship on all occupied land.Expand circularity efforts across the value chain.Innovate to offer products that support the transition to nature positive.Automotive Avoid and reduce impacts from operations.Avoid and reduce impacts from materials.Transform product offering.Con

289、serve and restore nature with Indigenous Peoplesand local communities.Drive cross-sector collaboration on standards andtransparency,and infrastructure and policy.AvoidReduceTransformRestore and regenerateMapping to AR3T hierarchyNature Positive:Corporate Assessment Guide for Financial Institutions32

290、Sector priority actions for 16 sectors(continued)FIGURE 9Source:World Economic Forum;Oliver Wyman;Science Based Targets Network(SBTN).Travel and tourism Avoid and reduce overtourism in sensitive areas.Avoid and reduce resource use and pollution.Restore and regenerate tourism destinations.Transform t

291、ourism by engaging meaningfully with Indigenous Peoples and local communities.Transform tourism by advocating for responsibletravel.Ports Sensitively plan port area to minimize impacts onnature.Enhance the use of clean energy,sustainable materials,and advanced equipment and operating systems.Improve

292、 the prevention and mitigation capacity against pollution and invasive species.Actively protect and restore nature.Promote a circular economy and catalyse cross-sector collaboration in regulation,finance andinnovation.Mining and metals Avoid,then reduce,impacts of mining operations and restore acros

293、s the mine life cycle in accordance with the mitigation hierarchy.Avoid,then reduce,water abstraction in mining operations and improve water stewardship across landscapes.Expand circularity and source responsibly.Support nature conservation and restoration with local communities,both across and beyo

294、nd own value chains,and invest in innovative nature financing mechanisms.Advocate for policy systems that protect nature andcatalyse cross-sector collaboration.Water utilities and services Avoid sourcing freshwater in water-stressed areas and areas important to biodiversity,and reduce unsustainable

295、freshwater use.Avoid and reduce water pollution.Avoid and reduce GHG emissions.Restore and regenerate habitats and ecosystems.Transform the sector through circularity,partnerships andpolicy.Offshore wind Avoid and reduce impacts of direct operations on nature,and restore and compensate for unavoidab

296、le residual impacts in accordance with themitigationhierarchy.Avoid and reduce indirect impacts on nature from components and materials through responsible sourcing.Innovate product design to reduce material demand and support the nature-positive transition.Actively support nature restoration and in

297、vest in nature-based solutions alongside local stakeholders.Catalyse multistakeholder collaboration and contribute to wider policy and systems change.Household and personal care products Improve water stewardship throughout the valuechain.Source responsibly and replace feedstocks with sustainable bi

298、o-based or other renewable materials.Change customer behaviour on product use and disposal through education and transparency.Support nature conservation and restoration through investment in responsible business practices and nature-based solutions(NbSs).Expand circularity,offer sustainable product

299、s andpackaging,and engage in collective action andpolicyadvocacy.Waste management Avoid and reduce the emission of methane at landfillsites.Avoid and reduce the use of energy and water throughout waste management processes.Restore and regenerate waste management sites andhistorically impacted ecosys

300、tems.Transform from waste management to resource management in a circular economy.Transform the sector through policy advocacy and collaboration.Forest products Maintain and enhance working forests.Reduce the impacts of processing,manufacturing and transport.Maximize the recovery of materials and pr

301、oducts.Partner and advocate beyond the value chain.AvoidReduceTransformRestore and regenerateMapping to AR3T hierarchyNature Positive:Corporate Assessment Guide for Financial Institutions33In total,88%of the priority actions fall under the categories“avoid”,“reduce”or“transform”,emphasizing the impo

302、rtance of financial institutions allocating funding to support businesses in changing their operations and business models.Nature-related policies allow financial institutions to understand how companies will guide their employees to mitigate overall impact on nature.2.6 Indicator 6:PoliciesNature-r

303、elated policies establish clear guidelines for employees and ensure consistent decision-making and actions across an organization.They allow financial institutions to understand how companies will guide their employees to mitigate overall impact on nature by setting rules,conditions and limitations

304、on nature-related sustainability matters.Financial institutions are interested in understanding the nature policies companies have in place to support the credibility of their nature strategies or transition plans.As a first step in understanding a companys progress on nature,many financial institut

305、ions already assess whether deforestation policies are in place(given that they are the most common environmental policies in the market).Financial institutions seek the following information from companies when assessing this indicator:Whether nature-related policies such as those relating to defor

306、estation or water are in place and based on international practices including the Accountability Framework Initiative What the scope of the policy is and how many company segments and locations are involved Whether the policy specifies commitments and targets for a no-deforestation and/or no-convers

307、ion approach,the definition of the intended outcome and cut-off dates,and the implementation mechanisms used(including risk assessment,traceability,supplier engagement strategies and operationalization)How policies are enforced Existing frameworks that companies maybeusing:Accountability Framework I

308、nitiatives How to Write a Strong Ethical Supply Chain Policy:This user guide outlines the process by which companies can apply the Accountability Framework to create or update an ethical supplychain policy aimed at safeguarding forests and other natural ecosystems,and upholding human rights.78 TNFDs

309、 Discussion paper on nature transition plans:This paper includes policies and conditions within its transition plan implementation strategy.79 Nature benchmarking initiatives state expectations around nature policies of companies such as Nature Action 100.80How financial institutions can get started

310、:Many companies already have deforestation policies in place.These are currently most observed in the food,beverage and agriculture,manufacturing and materials sectors,81 which have material impacts on forests.The forthcoming EU Deforestation Regulation is expected to further compel companies with c

311、ustomers and supply chains to implement anti-deforestation policies.The regulation prohibits companies from placing commodities or products from land deforested or degraded after 31 December 2020 on the EU market.Financial institutions can,at a minimum,use this information and start assessing whethe

312、r deforestation policies are in place until other policies become more established.If other issues,such as plastic pollution,are more relevant to acompanys operations,corresponding policies may be prioritized.In the target state,companies will havecomprehensive policies covering all material nature

313、and climate topics,as well as interlinked social policies,such as engaging andmanaging impacts on Indigenous Peoples andlocalcommunities.Financial institutions will seek to understand whether companies have the appropriate governance mechanisms in place to approve,implement and monitor progress agai

314、nst their nature ambitions or targets at different levels of the organization.As availability and quality of corporate data on nature have not yet reached target-state levels,governance is one of the key components financial institutions can rely on to assess companies on nature.Many companies alrea

315、dy have governance structures in place for climate.Climate and nature-related committees,for example,can be stand-alone committees or integrated into existing committees.2.7 Indicator 7:GovernanceNature Positive:Corporate Assessment Guide for Financial Institutions34 As availability and quality of c

316、orporate data on nature have not yet reached target-state levels,governance is one of the key components financial institutions can rely on to assess companies on nature.In particular,financial institutions hope to see robust governance for nature-related issues,which would ensure that the necessary

317、 oversight roles and responsibilities are in place to execute the strategy and actions laid out.A companys nature governance heavily depends on their business model.Organizations with nature or natural resources at the centre of their business models often already have nature deeply integrated into

318、governance structures(panies offering recycling services or in forestry/agriculture might have dedicated functions responsible for pollution/waste strategy at the board level).Other companies might integrate nature governance into existing structures or require the formation of new governance struct

319、ures(e.g.nature governance steering committees)to ensure the necessary governance systems are in place to drive such change over a long period of time.Financial institutions seek the following information from companies when assessing this indicator:Board-level oversight:Nature formally included in

320、the mandate of board-level committee Nature ambition and nature transition plan approved at board level Ongoing oversight of progress on nature atboard level Executive/senior management oversight:Nature formally included in the mandate ofexecutive-level committee(s)Nature ambition and nature transit

321、ion plan approved at executive committee level Executive-committee-level ownership of nature transition plan development and implementation Skills and training:Board-level training on nature Senior-management-level training on nature Employee training on nature Existing frameworks that companies may

322、 beusing:TNFD disclosure recommendations(governance A and governance B)and the TNFD Discussion paper on nature transition plans provide an overview of expectations around a companys nature governance.82 WWFs Catalysing Change:The Urgent Need for Nature Transition Plans provides an overview of expect

323、ations around a companys nature governance(including board-level or other strategy-oversight-body-level governance).83 Nature benchmarking initiatives state expectations around a companys nature governance(such as Nature Action 100).84How financial institutions are getting started:Many companies hav

324、e implemented and disclosed governance structures for climate and sustainability,particularly since the introduction of the Task Force for Climate-related Financial Disclosures(TCFD).Some are starting to explicitly incorporate nature,as a report by CDP in collaboration with Oliver Wyman and the Worl

325、d Economic Forum indicates.In total,52%of companies(based on a sample of 6,800 businesses,accounting for two-thirds of global market capitalization)have implemented board-level oversight of water,44%have board oversight of biodiversity and 33%have it for forests.85 Financial institutions can draw on

326、 this information and engage with companies to understand the extent to which climate and sustainability governance structures are taking a holistic approach when addressing other drivers of nature change.The TNFD Disclosures Recommendations build on the TCFD structure and include a pillar on govern

327、ance,and more than 500 companies are already signed up as TNFD adopters.86Nature Positive:Corporate Assessment Guide for Financial Institutions35CASE STUDY 5Emirates National Bank of Dubai(ENBD)ENBD is adapting its current risk management approach to address nature risk by integrating the Kunming-Mo

328、ntreal GBF.The approach seeks to capture physical,transitional and broader macroeconomic risks that manifest as risks to clients,such as stranded assets,supply chain disruptions,and capital and profit reductions.To do this,ENBD engages with clients directly to gather primary data on their business i

329、nterfaces with nature and support the transition towards nature-positive core operations.For example,in the shipping industry,ENBD works with shipping clients to understand their impact on protected environmental sites as well as the location of port facilities.In the agricultural sector,ENBD shares

330、 materiality assessment questionnaires with clients to better understand impacts and dependencies,and discuss adoption of regenerative agriculture practices.This direct client engagement informs discussions about how ENBD can support their clients to reduce impacts and mitigate risks affecting their

331、 dependencies.ENBD complements this assessment with analysis on regulatory shifts,changing standards and developments on key nature themes such as:Impact on mandatory nature regulations such as CSRD,Nature Restoration Law,Biodiversity Net Gain Impact on UN-protected habitats,Ramsar wetlands,national

332、ly protected sites,protected sites beyond national jurisdictions such as BBNJ Impact on Sustainable Development Goals(SDGs)14 and15 Impact on pollution regulationsFurthermore,ENBD has conducted materiality assessments on its portfolio to identify significant portfolio-level risks and has made strate

333、gic decisions to limit financing for palm oil,coal and arctic oil extraction.ENBD also assesses loans and investments using the Partnership for Biodiversity Accounting Financials(PBAF)methodology,measuring clients biodiversity footprints and deepening understanding of the impact of investments on biodiversity within the broader value chain.Emirates NBD nature risk approachExclusionary policyKunmin