The financial and investment market needs to better recognise the importance of biodiversity, ‘with a view to more systematic consideration of biodiversity in strategic decisions and operational policies’, BNP Paribas has said.
The bank made the call to coincide with the start of the Conference of the Parties to the Convention on Biological Diversity (COP 16), which is now under way in Colombia. The event offers an opportunity for nations to assess progress on the Kunming-Montreal Global Biodiversity Framework, which was adopted at COP 15.
Play their part
Biodiversity has become a central topic in public discussions and corporate strategies, BNP Paribas said, and financial institutions need to play their part by better analysing nature-related dependencies, impacts, risks and opportunities, and implementing practices that reduce the sector’s contribution to factors impacting biodiversity.
It has pledged its support for the development and financing of nature-based solutions, ‘defined as economically sustainable activities that are beneficial to biodiversity, contribute to climate change mitigation and adaptation, and underpin the economic and social development of communities’, and support ecological restoration.
Tackling deforestation
The French bank added has already embedded biodiversity-related criteria into its financing and investment policies, particularly in sectors with a high risk of deforestation, such as agriculture and mining.
As an example, in Brazil, where deforestation is closely linked to agricultural commodities like beef and soy, it has committed to financing only those companies that adopt ‘zero deforestation‘ practices by 2025.
‘Constructive dialogue with clients on this topic, and supervision of credit and investment activities, especially in the most sensitive sectors’, is essential, the bank added.
BNP Paribas noted that it also offers financial products aimed at promoting biodiversity, such as bonds or credits tied to biodiversity goals, and has committed to initiatives like Act4Nature and Blue Alliance. It is also expanding its research programmes supported by the BNP Paribas Foundation (Climate & Biodiversity Initiative). Read more here.
