Sustainable Finance Live: How can nature be made bankable?

finextra.com:

“Climate and nature is a double-sided coin. Most big companies in a variety of industries realise that they have a lot dependencies on nature. However, starting to understand dependecies is not enough, they need to have to right information to move forward,” Zaouati began.

Zaouati listed three pillars as part of the roadmap on the impact of companies on nature: the first being participating in biodiversity in nature, the second is helping the market in biodiversity, and the third and most important is investing in nature-based solutions.

As an example, Zaouati cited French fintech Iceberg Data Lab as having the first set of data to report the impact of businesses on nature.

Emphasising that the investment of economic conveyable entities with the objective of restoration can contribute greatly to sustainable development, Zaouati cited the Sustainable Ocean Fund that is working on nature-based projects in Latin America to restore land and water ecosystems and combat deforestation as a successful example of sustainable investment.

Zaouati concluded: “Utilising land and labels to restore land, plant trees, harvest, aiding the local population in partnerships between NGOs, farmers on the ground, and co-investors, and scaling up businesses led by expert innovation will have a long term impact and is a part of a big roadmap in our investment framework.”

The largest green finance instrument is a bond, but whether they are green, sustainability linked, or conventional, the jury is out on the impact they deliver.

Sustainable Finance Live explored how while the BIS are exploring tokenisation of bonds and how new forms such as sovereign sustainability linked bonds are emerging, the use of distributed ledger technology is currently