The #NextGen of Finance and Impact

FINANCE NATURE

At UNDP we aim to create nature-aligned investment opportunities to accelerate climate-smart impact


Why Finance Nature?

Why Finance Nature?

At UNDP we aim to create nature-aligned investment opportunities. Our goal is to leverage private capital and structure new finance to drive investment to inclusive nature-friendly enterprises or publicly traded companies and instruments that accelerate climate-smart impact.

The accelerated loss of nature is putting our collective future at risk. Forests underpin 1.2 billion livelihoods, provide 75% of our drinking water, and can provide 23% of the climate mitigation needed to meet goals set in the Paris Agreement. Yet forests are being lost to beef, soy, palm oil and timber, and are in crisis worldwide – the past five years are among the highest in deforestation. In 2018, despite the promises and pledges the world lost a Belgium-sized area of forest was destroyed.

Despite growing momentum for investments in sustainable development, only a fraction of the worldwide invested assets of banks, multinational enterprises, pension funds, insurers, as well as philanthropists and foundations, is aligned to the SDGs. As an example, ‘gray’ finance, including private sector investments and government subsidies, outpace investment in sustainable forest management by a factor of more than 150:1.

OUR VALUES

  • PEOPLE

    People are at the center of all that we do. We are committed to the communities we serve, and ensure each can fulfil their potential in dignity and equality in a healthy environment.

  • PLANET

    We are determined to protect the planet from degradation, including through sustainably managing its natural resources and taking urgent action on climate change- for present and future generations.

  • PROSPERITY

    We are determined to ensure that all human beings can enjoy prosperous and fulfilling lives and that economic, social and technological progress occurs in harmony with nature.

  • PARTNERSHIP

    We build strong, enduring relationships across sectors to align diverse interests and advance our collective mission.

    Why focus on small and medium enterprises?

    Why focus on small and medium enterprises?

    Small and medium enterprises (SMEs) are key to achieving the SDGs - as they account for 60% of jobs, and up to 40% of GDP in emerging markets. However, 70% of MSMEs lack access to finance: resulting in a $2.6 trillion credit gap. The situation is particularly challenging for nature-friendly SMEs, due to larger input investments and longer turn around on profit. This has resulted in unfair and unaffordable financing terms for most of these SMEs.

    Delivering on the SDGs will require the financial sector and its ecosystem to think differently about their role, as well as collaborate across asset classes. The financial sector has a critical role to play in supporting the Global Goals. For example, investors are in a unique position to invest in and influence business behavior in a manner that creates positive change in support of sustainability, while divesting from the drivers of deforestation. By channeling investments to nature-friendly SMEs, they can also unlock their full potential in supporting economic growth, innovation and climate-smart development.

      Finance for Nature Global Summit Report

      United Nations Development Programme (UNDP) and the Scottish Government hosted the Finance for Nature Global Summit on 20 and 21 May in Edinburgh, Scotland. It was delivered in partnership with the Global Ethical Finance Initiative (GEFI) and the New York Declaration on Forests (NYDF) Global Platform.

      It brought together 80 experts from financial institutions, investment banks, corporations, and NGOs to explore a new investment paradigm – one that accelerates private sector investment to small and medium sized enterprises that are focused on being inclusive, nature-friendly and climate-smart - with a particular focus on forest on marine businesses.

      Finance for Nature Global Summit Report

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      Inspiring Initiatives:

      Central Banks’ on Financial Risks due to Climate Change

      Central Banks’ on Financial Risks due to Climate Change

      The heads of central banks of England and France warn the global economy about the financial risks of climate change: “Carbon emissions have to decline by 45%...This requires a massive reallocation of capital.”

      Learn more here

      Ceres on Soybean & Animals in Supply Chains

      Ceres on Soybean & Animals in Supply Chains

      Trillion dollar investor coalitions call on: companies to cut climate, deforestation-related risks in global soybean supply chains; and fast food giants to set tough targets to reduce the greenhouse gas emissions and water usage of their meat and dairy suppliers.

      New York Declaration on Forests

      New York Declaration on Forests

      A political declaration among governments, companies, indigenous peoples and civil society to halve the loss of natural forests by 2020.

      Learn more here




      Principles for Responsible Investment

      Principles for Responsible Investment

      Climate change is the highest priority ESG issue facing investors. The PRI is working to help investors protect portfolios from risks and to expose them to opportunities in the shift to a low-carbon global economy.

      Learn more here

      Network for Greening the Financial System

      Network for Greening the Financial System

      The NGFS is a coalition of 34 central banks which was formed in 2017, with the Bank of England as a founding member. It released its first major report into climate-related financial risks on 17 April.

      Learn more here

      Making Sure Fish is Safe to Eat

      Making Sure Fish is Safe to Eat

      Plastics and chemicals pollute our oceans and contaminate seafood. Now, a new sea-to-plate data chain could track fish from ocean to local shops, clamping down on dishonest labelling.

      Learn more here


      Cerrado Manifesto

      Cerrado Manifesto

      The Amazon Forest’s relatively low-key neighbor gets little attention, but it’s the world’s most biodiverse savannah, as well as the birthplace of many water systems.

      Learn more here



      Norway’s Sovereign Wealth Fund

      Norway’s Sovereign Wealth Fund

      Norway’s $1 trillion sovereign wealth the world’s largest, has pulled out of more than 33 palm oil companies over deforestation risks during the last seven years.

      Learn more here



      HSBC & Walmart: A Green Supply Chain

      HSBC & Walmart: A Green Supply Chain

      Walmart has teamed up with HSBC to offer its global suppliers improved financing rates tied to their sustainability performance.

      Learn more here





      Sustainable Trade Initiative

      Sustainable Trade Initiative

      A public-private partnership to prototype new economically viable approaches to realize green and inclusive growth at scale in commodity sectors and sourcing areas.

      Learn more here



      Global Assessment Report on Biodiversity & Ecosystem Services

      Global Assessment Report on Biodiversity & Ecosystem Services

      A definitive study finds that nature everywhere is declining. One million animal and plant species are now threatened with extinction. To halt these trends will take "transformative change" in every aspect of how humans interact with nature.

      Learn more here

      Zug Guidelines & FaithInvest

      Zug Guidelines & FaithInvest

      The guidelines unpack the priorities of the faiths for future investment in environmental and sustainable development. Learn more here.

      FaithInvest was born from a realisation that all faiths together could be the fourth largest investment bloc in the financial world. Learn more here