HKGFA Biodiversity Training Series Session 4: “The Integration of Biodiversity in Financial Products and Asset Financing”

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The 4th webinar in the HKGFA Biodiversity Training Series on 2 May 2024 attracted a record number of over 530 attendees. The webinar was organised under the cross-collaboration of the TNFD/ Biodiversity Workstream and the Net Zero Commitments Workstream with the fourth theme on “The Integration of Biodiversity in Financial Products and Asset Financing”.

Sincere thanks to our speakers, Mr. Robert-Alexandre Poujade, Biodiversity Lead, BNP Paribas Asset Management; Ms. Crystal Geng, Asia ESG Research Lead, BNP Paribas Asset Management; Mr. Dave Dai, Asia Head of ESG Research, Barclays; Mr. Gratien Davasse, Green & sustainable finance expert, Associate, Natixis CIB, Green Sustainable Hub, Centre of Expertise and Innovation; Mr. Sylvain Vanston, Executive Director, Climate and Biodiversity Investment Research, MSCI for their insightful sharing on how biodiversity-related consideration should be integrated into financial products and asset financing.

Key takeaways

  • Nature and biodiversity-related policies and regulations have gained increasing traction since the Paris Agreement. From a global perspective, a few key updates are the Taskforce on Nature-related Financial Disclosures (TNFD) Recommendations, the first corporate science-based targets for naturepublished by Science Based Targets Network (SBTN), NGFS’s Nature-related Financial Risks: a Conceptual Framework to guide Action by Central Banks and Supervisors, and the announcement of ISSB to commence research projects about risks and opportunities related to nature and human capital.
  • The Kunming-Montreal Global Biodiversity Framework (GBF) estimated a biodiversity finance gap of $700 billion annually that needs to be bridged between now and 2030 to halt and reverse biodiversity loss. Financial institutions are instrumental in disseminating biodiversity loss reduction in the production processes through financial instruments. One of the initial steps suggested is to better locate and understand an FI’s geographical exposure to sensitive ecosystems, then progressively reduce financing on related projects while financing sectoral practice changes and conservation and preservation projects.
  • Green bonds and sustainability-linked products are common financial products issued by FIs to lessen the biodiversity pressure. Innovative solutions and products are required, from scaling blended finance projects such as debt-for-nature swap products to financing nature-based solutions that address nature and climate-related challenges.
  • Speakers also suggested companies integrate biodiversity into their existing climate-related frameworks and considerations as a way of refining more comprehensive ESG strategies.

 

Replay of the event is available on HKGFA YouTube Channel:

https://youtube.com/live/WEQ921z21UM

 

<Useful resources>

  1. Session Presentation slides by Mr. Robert-Alexandre Poujade, BNP Paribas Asset Management

https://www.hkgreenfinance.org/wp-content/uploads/2024/05/20240502-HKGFA-Biodiversity-Session-4-Presentation-Slides.pdf

  1. MSCI: Biodiversity Risks and Opportunities in Asia Pacific

https://www.msci.com/www/research-report/biodiversity-risks-and/04539423034

 

The 5th and final session of the series will be held on 12 June (Wed) 4 pm HKT on Zoom. RSVP now and join us!

https://www.hkgreenfinance.org/event/hkgfa-biodiversity-training-series-nature-and-biodiversity-in-practice-case-studies-and-insights/

 

For the past HKGFA Biodiversity Training Sessions or other HKGFA Training Sessions, please visit: https://www.hkgreenfinance.org/hkgfa-training-and-education/

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