Finance and Biodiversity: Finance for Biodiversity (FfB) Launches a New Sovereign Debt Working Group

The FfB Foundation is launching a working group to integrate biodiversity into sovereign debt financing. This initiative brings together 17 financial institutions, including banks, insurers, and asset managers.

A Major Financial Challenge

Although sovereign debt is crucial for financial markets, its impact on biodiversity is often overlooked. Unlike climate risks, there is still no clear framework for assessing biodiversity in this field. This working group aims to bridge that gap.

Concrete Objectives

The initiative will analyze how National Biodiversity Strategies and Action Plans can align with financial market expectations. It will also examine countries’ natural capital and the impact of their key economic sectors on biodiversity.

“Investors need to better integrate biodiversity considerations into their decisions on sovereign debt,” emphasizes Anita de Horde, Executive Director of the FfB Foundation.

Promoting Sustainable Finance

As part of the FfB’s Finance for Nature Positive program, this group aims to direct more capital toward a nature-positive economy. The goal is to reinvent sovereign debt analysis to encourage more sustainable investments aligned with environmental priorities.