Accounting for Biodiversity: Towards measuring and valuing the biodiversity impacts of financial investments
With the climate and biodiversity crises of the 21st century becoming increasingly material across all sectors, financial institutions have turned their attention towards natural capital and its influences and dependencies on investment activities. This shift has led to a range of guidance and frameworks geared towards valuing and measuring biodiversity impacts, risks, and opportunities within the context of sustainable finance. However, there are relatively few real-world examples that apply such frameworks to portfolios or investment projects.
The Accounting for Biodiversity working paper seeks to close this gap by providing a real-world application to exhibit how these metrics are being used for the ongoing development of ADM Capital’s Asia Climate-Smart Landscapes Fund (ACLF). ACLF is the first in a series of funds under a new climate vertical within ADM Capital. The fund looks to offer medium-term senior secured lending to SMEs in Indonesia that are engaged in sustainable agriculture, agroforestry, and aquaculture while integrating climate, livelihood, land use and gender equity targets.
Published by ADM Capital Foundation, the working paper shares insights, challenges, and resources that financial stakeholders can apply to inform their own biodiversity approaches. It also serves to inform readers on the fundamental concepts of biodiversity, its materiality, and the range of guidance, metrics, and initiatives that are emerging. Using a variety of tools, from geospatial analytics to artificial intelligence, we aim to provide insights into the data, processes, and considerations behind the Accounting for Biodiversity journey.
Read the working paper in the link below:
Accounting for Biodiversity: Towards measuring and valuing the biodiversity impacts of financial investments
