Introduction

The report discusses how governments can ensure public and private financial flows align with biodiversity goals. It was developed by the Finance for Biodiversity (FfB) Foundation to highlight actions needed to implement the Kunming-Montréal Global Biodiversity Framework (GBF). The report emphasises the alignment of financial flows, improved biodiversity disclosures, and the role of private and public actors in tackling biodiversity loss.

Recommendation 1: Require companies and financial institutions to assess, monitor, and disclose their nature-related impacts, dependencies, risks, and opportunities

The report recommends that large companies and financial institutions should be required to assess and disclose their nature-related impacts and risks, as outlined in Target 15 of the GBF. Governments should introduce legal, administrative, and policy measures for mandatory disclosure of biodiversity impacts. These requirements should extend across operations, supply chains, and portfolios. Target 15 also suggests governments develop frameworks that support small and medium enterprises (SMEs) in disclosing their biodiversity impacts. Disclosures are key to managing risks and ensuring financial institutions consider biodiversity in investment decisions.

Recommendation 2: Mandate nature transition plans, based on sectoral transformation pathways, and foster collaborative commitments

The report calls for governments to mandate nature transition plans that outline how companies and financial institutions will reduce biodiversity loss. These plans should align with broader sectoral transformation pathways. Transition plans, particularly in high-impact sectors like agriculture and mining, will provide clarity on how businesses intend to address their negative impacts on biodiversity. The report suggests using incentives such as tax reforms and subsidies to encourage private sector involvement. By 2025, financial institutions should have transition plans that align financial flows with biodiversity targets, helping to close the US$700 billion biodiversity finance gap.

Recommendation 3: Actions from central banks and supervisors

Central banks and supervisors play a vital role in integrating nature-related financial risks into their mandates. The report highlights that macro and micro-prudential supervision should consider biodiversity risks, ensuring that financial systems are resilient to biodiversity loss. Central banks are encouraged to integrate biodiversity considerations into their portfolio management, stress-testing, and monetary policies. The inclusion of nature-related risks in supervisory frameworks will ensure that harmful financial flows are minimised and redirected towards biodiversity-positive activities.

Recommendation 4: create economic incentives for businesses and financial institutions to maximise the mobilisation of private finance

Economic incentives are crucial to encouraging private finance in biodiversity conservation. The report recommends governments work across ministries to implement fiscal policies, such as tax incentives and green finance instruments, to stimulate private sector financing. Notably, the reduction of harmful subsidies—by US$500 billion per year—is highlighted as an urgent action to support the conservation and sustainable use of biodiversity. Governments are also urged to create sovereign green bonds and other financial tools to attract investments in nature-positive activities.

Conclusion

The report advocates a “whole-of-government” approach for the successful implementation of the GBF, where both public and private actors collaborate on biodiversity goals. The inclusion of transition plans, improved disclosure standards, and incentives for private finance are seen as key steps towards achieving a nature-positive economy by 2050. The report stresses that without stronger collaboration and clear policy frameworks, the financial sector will struggle to address biodiversity loss effectively.