FBF adds 2nd framework for asset managers

The Finance for Biodiversity Foundation has launched the second edition of its Nature Target Setting Framework for Asset Managers and Asset Owners.

The FBF says the second edition enhances the original framework and introduces new elements to help financial institutions align their investments with nature targets.

Key updates include:

· Three Types of Nature Targets: The framework adapts key targets into three categories—initiation targets, monitoring targets, and portfolio targets—providing a clear path towards the implementation of comprehensive portfolio targets.

· Unified Approach: The revised framework replaces the concept of beginner and advanced tracks with a unified approach, ensuring that all targets are geared towards being achieved by 2030, in alignment with the Global Biodiversity Framework.

· Impact Drivers Identification: The framework identifies three key impact drivers on nature for 10 priority sectors: land use change, volume of water use, and emission of toxic soil and water pollution.

· Data-Driven Target Setting: It establishes that sufficient data exists to start setting targets on these impact drivers, presenting concrete examples for investors.

· Detailed Guidance and Support: The framework offers comprehensive examples, processes, and detailed support to assist investors in setting effective nature targets.

The scope of the beta and the second version is limited to the asset categories listed equity and corporate bonds. Additional asset classes, including sovereign debt, will be integrated into the guidance in future iterations.

Anita de Horde, Executive Director of FfB Foundation, said, “We are incredibly proud to have developed this second edition of the framework in collaboration with our dedicated members. It represents a collective effort to provide investors with the necessary tools to start developing and disclosing ambitious nature targets. Our signatories to the FfB Pledge are committed to disclosing their first targets by 2025, marking a significant step towards halting and reversing biodiversity loss and promoting sustainable investment practices.”