Unlocking Biodiversity's Potential: How Financial Institutions Can Balance Risk, Cost, and Opportunity

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In a rapidly evolving environmental landscape, financial institutions are tasked with addressing biodiversity and nature-related risks while minimizing costs. This interview delves into strategies to harness open-source data, leverage climate-focused frameworks, and invest in green financial products that balance biodiversity risk with opportunity.

Sep 19, 2024

Marina Severinovsky, Head of Sustainability, North America, Schroders

Unlocking Biodiversity's Potential: How Financial Institutions Can Balance Risk, Cost, and Opportunity

Leverage open-source tools and data for nature and biodiversity risk management, avoiding unnecessary spending on external resources by utilizing freely available tools like TNFD and UNEP.
Balancing risk and opportunity is key to addressing biodiversity impacts, with green financial products like biodiversity credits and thematic equities driving positive impact while mitigating risk.
Nature-related disclosures are rapidly becoming mandatory, and institutions must adopt frameworks like TNFD and align with evolving global standards to meet growing scrutiny.
Methane reduction is a critical part of any sustainability framework, with significant policy risks attached but also opportunities for cost-effective decarbonization in industries like oil and gas.