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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
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Indirect impacts through investment/ provision of financial services to company’s which mismanage biodiversity.
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Potential for positive impact through incentivising development of biodiversity related products e.g. biodiversity offsets, offsets, REDD, payments for ecosystem services.
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Opportunities/Risks
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Development of new financial products e.g. carbon credits or biodiversity offsets.
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Differentiation and branding e.g. HSBC’s Climate Partnership.
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New investment opportunities e.g. biodiversity banking.
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