Home > Sectors > Banking and Financial Services

Sectors

Banking and Financial Services

About this sector

The finance industry constitutes the largest group of companies in the world. Banking is the largest financial services sector (24% of total assets in 2005), followed by securities (21%), insurance (18%), pensions (17%) and government related services (13%)168. The role of the sector in biodiversity loss and, indeed, in its conservation is increasingly being recognised. By providing financing to projects and companies, the sector has an indirect reliance and impact on biodiversity and ecosystem services.

Impacts

  • Indirect impacts through investment/ provision of financial services to company’s which mismanage biodiversity.
  • Potential for positive impact through incentivising development of biodiversity related products e.g. biodiversity offsets, offsets, REDD, payments for ecosystem services.

Opportunities/Risks

  • Development of new financial products e.g. carbon credits or biodiversity offsets.
  • Differentiation and branding e.g. HSBC’s Climate Partnership.
  • New investment opportunities e.g. biodiversity banking.

Case Studies


Handling of the Yamato River water quality improvement support time deposit “Yamato River Time Deposit”

Handling of the Yamato River water quality improvement support time deposit “Yamato River Time Deposit”

This project is based on the “Yamato River time deposit”, a product marketed by Yamato Shinkin Bank and designed to improve the water quality of the Yamato River, which flows through the basin of Nara. Additional interest is paid to deposits when prescribed improvements are seen in water quality, specifically the BOD (biological oxygen demand) levels.

Testing the first habitat banking project in Europe

Testing the first habitat banking project in Europe

New market mechanisms targeting biodiversity conservation are emerging worldwide, and among others, the biodiversity offset market size is expected to increase in the coming years. The French company CDC Biodiversité has seized this opportunity and is testing the first habitat banking project in Europe.

Utilizing financing mechanisms to protect Japanese satoyama biodiversity

Utilizing financing mechanisms to protect Japanese satoyama biodiversity

Aware of the role finance has to play in the field of biodiversity projects funding, Sompo Japan has developed a loan mechanism that fosters investments in ecological housing and finances a charity fund dedicated to Japanese specific landscape protection.

Yogyakarta Special Province Wildlife Reserve Restoration and Recovery

Yogyakarta Special Province Wildlife Reserve Restoration and Recovery

This project is designed to restore a natural reserve that has been ravaged by illegal logging and, over the long term to contribute to the local economy through the planting of trees. This has resulted in the planting of some 300,000 trees across nearly 350 hectares of highland area.


Tools and Mechanisms


EU Business and Biodiversity Platform

EU Business and Biodiversity Platform

http://ec.europa.eu/environment/biodiversity/busin...

The EU Business and Biodiversity Platform is a unique facility where businesses can come together to share their experiences and best practices, learn from their peers, and voice their needs and concerns to the European Commission. The Platform aims to strengthen the link between the business sector and biodiversity conservation, in particular in the following six priority sectors: agriculture, food supply, forestry, non-energy extractive industry, finance, and tourism.

Biotechnology Industry Organization (BIO)

Biotechnology Industry Organization (BIO)

http://bio.org/ip/international

BIO is the world's largest biotechnology organization, providing advocacy, business development and communications services for more than 1,150 members worldwide. BIO engages in the discussions on a possible patent law harmonization treaty within WIPO, the WTO TRIPS process, as well is actively engaged in the deliberations of the Intergovernmental Committee on Folklore, Traditional Knowledge and Genetic Resources of the World Intellectual Property Organization and in various forums within the Convention on Biological Diversity (CBD).
UK Green Building Council

UK Green Building Council

http://www.ukgbc.org/site/home

The UK Green Building Council's mission is to improve the sustainability of the built environment in homes and non-domestic buildings by transforming the way it is planned, designed, constructed, maintained and operated. Additionally, they have produced sector specific biodiversity guidance.
Katoomba Group - United Nations University

Katoomba Group - United Nations University

http://www.katoombagroup.org

The Katoomba Group is an international network of individuals working to promote, and improve capacity related to, markets and payments for ecosystem services (PES). The Group serves as a forum for the exchange of ideas and strategic information about ecosystem service transactions and markets, as well as site for collaboration between practitioners on PES projects and programs. UNIFEM works to foster women's empowerment and gender equality throughout the world. UNIFEM has identified four strategic areas that are of critical concern for the achievement of gender equality and women's empowerment and which guide our work:

- Reducing feminized poverty
- Ending violence against women
- Reversing the spread of HIV/AIDS among women and girls
- Achieving gender equality in democratic governance in times of peace as well as war.

European Bank for Reconstruction and Development (EBRD)

http://www.ebrd.com/enviro

The EBRD is an international financial institution that supports projects in 30 countries from central Europe to central Asia. Investing primarily in private sector clients whose needs cannot be fully met by the market, the Bank promotes entrepreneurship and fosters transition towards open and democratic market economies.

Choose another sector


Banking and Financial Services

Case studies
Tools and Mechanisms