FfB Foundation launched the Nature Target Setting Framework for Asset Managers and Asset Owners

The Finance for Biodiversity Foundation (FfB) proudly launched the Nature Target Setting Framework for Asset Managers and Asset Owners. The milestone was celebrated during a webinar featuring a keynote by David Cooper, Acting Executive Secretary of the Convention of Biological Diversity (CBD) on 30 November 2023. 

The pioneering beta-version framework is developed in collaboration with 44 FfB member organisations of the Target Setting working group and key partners. It aims to guide investors in setting targets and steering financial flows in alignment with the mission of the Global Biodiversity Framework to halt and reverse biodiversity loss by 2030.  

Four types of targets

Four types of targets are set out in the framework to create a shared understanding and common language for investors: 

  • Initiation Targets: analyse exposure to nature-related impacts, dependencies, risks, and opportunities and embed these considerations in the governance, strategy, and capabilities of the organisation.
  • Sectoral, Engagement, and Portfolio Coverage Targets: take action to reduce material drivers of biodiversity loss in priority sectors by setting engagement and stewardship targets and aggregating these at the portfolio level.

Asset managers and asset owners are advised to establish initiation targets to be achieved by 2026 and sectoral, engagement, and portfolio targets to be achieved by 2030 or earlier. 

Scope

The framework focuses on the asset classes listed equity and corporate bonds, but in future iterations, it will incorporate additional asset classes, including sovereign debt. 

Collaboration

FfB Foundation will collaborate with SBTN, UNEP FI and other organisations in further development of the targets. Banks are encouraged to refer to UNEP FI’s analogous PRB Target Setting Guidance for assistance in establishing nature targets. 

Full version launch in 2024

The next version of the guidance document is slated for publication in the first half of 2024, featuring specific targets for ten priority sectors. A subsequent version in the second half of 2024 and beyond will expand coverage to additional asset classes and incorporate positive impact targets. 

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