Bridging finance and nature: the role of the Global Biodiversity Score

Dossier de la MEB n°50

Analysis of the impact of a STOXX Europe 600 portfolio on biodiversity

Sommaire de la publication

  1. Overview of GBS-linked solutions for the financial sector

1.1 The emergence of the Global Biodiversity Score as a solution for financial players
1.2 Mitigate or collapse: the importance of biodiversity-related risks
1.3 Methodology of the Global Biodiversity Score
1.4 GBS-linked solutions for portfolio’s Biodiversity Footprint Assessment

  1. Assessing impacts and dependencies of listed equities and bonds

2.1 BIA-GBS, a database on listed assets in partnership with Carbon4 Finance
2.2 Biodiversity footprint of bonds from sovereign entities and public authorities

  1. Evaluating non-listed assets impacts and dependencies with GBSFI solutions

3.1 Screening non-listed portfolios’ biodiversity footprint with the GBS
3.2 Monitoring biodiversity-related risks at the portfolio level: methodology for Advanced Screening
3.3 Assessing impacts and dependencies of non-listed assets with a refined approach: the Simplified Biodiversity Footprint Assessments
3.4 Course of action for developing a biodiversity measurement process for unlisted portfolios

  1. Assessing biodiversity-related risks: role of the GBS in the measurement landscape

4.1 Measuring biodiversity-related risks: a wide range of metrics needed
4.2 Different needs of input data granularity for different business applications

  1. Case studies

5.1 Analysis of the impact of a STOXX Europe 600 portfolio on biodiversity using BIA-GBS
5.2 How BIA-GBS can be used to disclose in line with the TNFD framework? The case of agriculture and fisheries in Europe
5.3 Assessing the Biodiversity-Related Financial Risks of the French financial institutions with BIA-GBS

RÉSUMÉ

Bridging finance and nature: the role of BIA-GBS and GBSFI in measuring biodiversity-related financial risks

Analysis of the impact of a STOXX Europe 600 portfolio on biodiversity

Why should financial players embody their crucial role in reversing the erosion of biodiversity by measuring biodiversity-related financial risks? How can financial institutions measure impacts and dependencies of the assets they finance. How GBS-linked solutions can help to cover all asset classes, so that all financial actors may take action?

CDC Biodiversité is developing comprehensive and specific solutions for financial players which seeks to answer these questions. Firstly, to meet the specific need of financial institutions for accurate biodiversity data on listed assets portfolios, the Biodiversity Impact Analytics powered by the Global Biodiversity Score (BIA-GBS) database was launched in July 2021 in partnership with Carbon4 Finance, a pioneer and leader in climate data and methodologies. Several methodologies have also been developed by CDC Biodiversité to extend the coverage of biodiversity footprint measurement to a wider range of financial assets.

This first report on bridging finance and nature provides explanation and illustrations on the various applications of the Global Biodiversity Score (GBS) for the financial sector (listed or private equity, banking activities, infrastructure financing…). It also describes the role of the GBS in the measurement landscape: how should it be used in combination with other tools and how does it comply with various standards and regulations. Finally, it shares results of specific case studies, like the one on, “How BIA-GBS can be used to disclose in line with the TNFD framework? The case of agriculture and fisheries in Europe”.

Édito

Julen González Redín, Technical Director, Finance for Biodiversity Foundation

Julen González Redín

Technical Director, Finance for Biodiversity Foundation

Tribune

Marianne Louradour

Chairwomen, CDC Biodiversité