Landmark guide to help build strong connection between finance and natureJanuary 31, 2019
The new guide INTEGRATING NATURAL CAPITAL IN RISK ASSESSMENTS: A STEP-BY-STEP GUIDE FOR BANKS, recently published by the Natural Capital Finance Alliance, is the world’s first step-by-step handbook to help financial institutions better understand how they depend on nature, from water and raw materials through to biodiversity and pollination.
At the heart of the guide is the recently launched ENCORE tool (Exploring Natural Capital Opportunities, Risks and Exposure), which enables financial institutions to map their dependencies on natural capital across their portfolios to assess their exposure to risks such as air pollution, climate change and the destruction of forests.
The Natural Capital Finance Alliance was supported by PwC in producing the guide, which has already been piloted by five banks across South Africa, Colombia and Peru. The guide marks the latest phase in the Advancing Environmental Risk Management (AERM) initiative, funded by the Swiss State Secretariat for Economic Affairs (SECO) and MAVA. It comes within the frame of MAVA’s action plans aiming to integrate natural capital into national green economy planning and to support the Green Economy transition through the financial system.