FfB Foundation Launches Sovereign Debt Focus Group to Bridge the Nature-Finance Gap
New initiative to help financial institutions integrate nature into sovereign debt finance and drive global market change.
The Finance for Biodiversity (FfB) Foundation is thrilled to announce that it has launched a Sovereign Debt focus group to develop practical guidance for financial institutions on integrating nature considerations into sovereign debt finance. The group includes 17 FfB members, spanning banks, asset owners, asset managers and insurers.
Sovereign debt is a major part of global financial markets, yet its impact on nature is often overlooked. We urge financial institutions to consider biodiversity in risk evaluation, asset allocation, and impact strategies. While climate risk frameworks exist, clear guidance on biodiversity loss and sovereign debt is lacking. This initiative introduces the first methodology to bridge that gap.
“Investors have yet to fully consider the impact of sovereign debt on nature. To align financial markets with global biodiversity goals, we need practical tools to assess how countries affect nature—especially for developing nations seeking private sector nature funding,” said Anita de Horde, Executive Director of FfB Foundation. “We are excited to explore this topic and begin working on the integration of nature into sovereign debt assessments to drive meaningful change.”
Focus Group Goals
The group will assess how National Biodiversity Strategies and Action Plans (NBSAPs) and national biodiversity policies align with financial market expectations. It will also examine countries’ natural capital, key economic sectors, and their role in global biodiversity.
“While existing nature frameworks focus primarily on corporate assets, there remains a critical gap in assessing sovereign assets on nature. Sovereign issuers also lack clear guidance on integrating national nature strategies into debt instruments,” said Gaëlle Blanchard, ESG Analyst – Sovereigns & Supranationals at Amundi Investment Solutions and Chair of the Sovereign Debt focus group. “This focus group will bridge that gap and drive progress at the intersection of nature and sovereign debt.”
The Sovereign Debt focus group is designed to be a catalyst for innovation, bringing together expertise to drive fresh thinking and global momentum on this critical issue. The FfB Foundation’s goal is to reshape the way sovereign finance integrates nature—moving beyond traditional macroeconomic indicators to embed nature considerations at the heart of financial decision-making.
Mobilising Finance for Nature
The focus group will support FfB’s Finance for Nature Positive programme, providing financial institutions with tools to align investments with nature-positive goals. It will also inform FfB’s policy work and engagement with policymakers.
By fostering collaboration among financial institutions, markets, multilateral development banks, and governments, this initiative seeks to increase financial flows towards a healthy relationship between economies and nature.