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Restore nature

Our focus on restoring nature aims to help a critical mass of financial institutions integrate environmental risks, opportunities and impacts into their assessment of corporate performance and financing decisions. Alongside this, our workstreams aim to create actionable pathways for financial institutions to actively pursue the sustainable financing of credible opportunities to restore nature.

 

We continue to pursue this objective with our members through ongoing research and collaborations:

Soft Commodities Compact InfographicSoft Commodities Compact

The Soft Commodities Compact is a unique client-led initiative that aims to mobilise the banking industry as a whole to contribute to transforming soft commodity supply chains and help clients achieve zero net deforestation.

Jointly launched by the Consumer Goods Forum and the Banking Environment Initiative in 2014, the Soft Commodities Compact focuses upon the four food and timber commodities that have the largest impact upon deforestation and biodiversity.

Since its launch a dozen major global banks have championed the Soft Commodities Compact to help achieve net zero deforestation in the four commodities of soy, palm oil, beef and PP&T (paper,pulpand timber).

 


Biodiversity Loss and Land DegradationFinancial Risks of Biodiversity Loss and Land Degradation

Scientific evidence shows that the deterioration in biodiversity and land quality is exacerbated by climate change and accelerating towards irreversible tipping points. With an estimated US$ 44 trillion of annual economic output reliant on nature, the acceleration of biodiversity loss and land degradation towards these tipping points holds catastrophic economic consequences, as well as for nature and society.

 

 

 

 


TradoTrado: New technologies to fund fairer, more transparent supply chains

The Trado project aimed to demonstrate the transformative potential of harnessing digital innovation and financial technologies to improve the sustainability of global supply chains and trade finance.

The Trado model enables a sustainability ‘data-for-benefits’ swap between a buyer and a supplier in the supply chain using banks’ traditional supply chain financing. This swap, provides parties in the supply chain with reliable data about the supply chain’s sustainability properties, helping to unlock finance to reward first mile producers such as smallholder farmers for information on sustainability.

 

 


Fintech ReportCatalysing Fintech for Sustainability: Lessons from multi-sector innovation

The application of financial technology (Fintech) stretches beyond the provision of financial services.  The Fintech Taskforce was made up of nine financial institutions, three corporates and four innovative start-ups, to look at how fintech could help solve sustainability challenges. The group made eleven recommendations, informed by three use cases, publishing these in 2017. 

This report is the output of the Fintech Taskforce (‘the Taskforce’), which was convened by the Banking Environment Initiative (BEI) in March 2017 for a six-month term. Its purpose is to share the Taskforce’s recommendations on how to design collaboration between multinationals, financial institutions and start-ups such that we better harness fintech to help solve sustainability challenges in the real economy.


 

Further CISL research contributing to restoring nature


Environmental risk analysis by financial institutions – a review of global practice

September 2016 – The G20’s new Green Finance Study Group asked the Cambridge Centre for Sustainable Finance to serve as Knowledge Partner and make recommendations on how to integrate environmental risk into mainstream financial decision-making.

Environmental risk analysis by financial institutions – a review of global practice - Read More…

Measuring business impacts on nature: A framework to support better stewardship of biodiversity in global supply chains

17 April 2020 – A new report from The Natural Capital Impact Group introduces a Biodiversity Impact Metric to help businesses manage their supply chain risks associated with nature. Highlighting the important role of the private sector in protecting and restoring biodiversity, the report is published in the midst of a global pandemic which has, in part, been caused by the breakdown of our relationship with nature. This report has been designed to help companies increase their resilience to such shocks by understanding the impacts they are responsible for and considering the benefits of restoring biodiversity and nature.

Measuring business impacts on nature: A framework to support better stewardship of biodiversity in global supply chains - Read More…

Measuring investment impacts

The Investment Leaders Group (ILG) has developed an original framework to allow the industry to quantify investment impacts. Our aim is to enable a ‘revolution’ in consumer choice in financial services. This means making the social and environmental impacts of investment transparent to financial consumers in the same way that health and other concerns are apparent to food consumers today.

Measuring investment impacts - Read More…

Modelling better business: Anglian Water’s approach to valuing its land for biodiversity and preparing for net gain

February 2020 - The Natural Capital Impact Group (NCIG) has launched a new case study showcasing how Anglian Water has developed a measurement framework for implementing its commitment to biodiversity net gain across the driest region of the United Kingdom.

Modelling better business: Anglian Water’s approach to valuing its land for biodiversity and preparing for net gain - Read More…

The Catchment Management Declaration – Update

20 February 2020 – Over 110 organisations have now signed up to the Catchment Management Declaration which aims to gather commitment and action for a multisector approach to catchment management. This update outlines the progress signatories have made and demonstrates the breadth of action being taken in support of the Declaration.

The Catchment Management Declaration – Update - Read More…

Transition risk framework: Managing the impacts of the low carbon transition on infrastructure investments

22 February 2019 – The ClimateWise Transition Risk Framework provides an open-source, step-by-step methodology on how to manage the risks and capture emerging opportunities from the low carbon transition.

Transition risk framework: Managing the impacts of the low carbon transition on infrastructure investments - Read More…

Virtual investment experiment indicates informed consumers choose sustainable funds even with reduced returns

22 October 2019 – A new study has shown that when given clear social and environmental performance data, consumers display an appetite for sustainable investment even with lower returns.

Virtual investment experiment indicates informed consumers choose sustainable funds even with reduced returns - Read More…