NatureFinance, a Swiss non-profit, has launched a new tool which combines multiple datasets to help financial institutions (FIs) assess their degree of alignment with nature-positive outcomes. The first module of NatureAlign will allow FIs to establish their baseline position with respect to nature, including measuring specific components such as biodiversity and water scarcity. “Coming out of [COP16], we can see two things clearly – progress on saving nature is too slow, and money is not moving in the right direction,” said Julie McCarthy, NatureFinance’s CEO. “With our financial and economic system currently on track for 2-3°C warming, asset managers, asset owners and banks are crucial to redirecting finance towards economic activities that deliver nature-positive outcomes.” NatureAlign will draw data from the likes of the SEED Biocomplexity Index. Future modules of the tool could focus on providing frameworks to assess alignment with the Global Biodiversity Framework (GBF). According to UNEP, nearly US$7 trillion per annum is invested globally in activities that negatively impact nature, the equivalent of roughly 7% of global GDP. “Financial institutions can dramatically transform both the business and natural landscape by proactively managing nature risks and seeking out nature-positive opportunities in their decision-making,” added McCarthy. “Innovative, accessible tools and data are critical to help them know where, how and in what to invest on a rapidly changing planet. We urgently need financial institutions’ leadership to align global investment with an economy that works for nature, climate and people.”
