監管機構對自然的關注日益俱增，反映出投資者和環保團體對企業有著越來越多的相關資訊要求，要求說明其對生物多樣性和自然棲息地的影響，及由此帶給自身業務造成的風險資訊。這個情況亦於一些推動方案中反映出，如Finance for Biodiversity Pledge [生物多樣性融資承諾]，目前已有160多個簽署方。該承諾要求金融機構通過其投資和融資活動來保護和恢復生物多樣性。
Alexandra Tracy, Green Finance Advisor of Friends of the Earth (HK)
Regulators and
standard setters have been working diligently over recent years to adapt the
reporting infrastructure designed for climate to biodiversity. In May 2023, the International Sustainability
Standards Board (ISSB) – a merger of several prominent standard setters which
is rapidly becoming the leading global reporting authority – launched a
consultation to seek comments on priorities for its upcoming two year work
plan. More than four hundred responses
were received from market participants, which made it is clear that there is strong
support for a focus on biodiversity and ecosystems.
Biodiversity in Focus
Heightened regulatory interest in nature reflects increasing demands by
investors and environmental groups for information from corporates on their
impacts on biodiversity and natural habitats, and the consequent risks to their
own businesses. This is reflected in
movements such as the Finance for Biodiversity Pledge, committing financial
institutions to protecting and restoring biodiversity through their investments
and financing activities, which has over 160 signatories.
Since the United Nations Biodiversity Conference (COP15) in December
2022, when a landmark global deal
was agreed to protect nature and mobilise funding at scale for conservation, more companies have begun to draw up plans to limit their
impacts on natural ecosystems and to identify the potential opportunities
associated with investing in biodiversity initiatives.
In many ways, the approaches by
regulators and environmental groups to encourage movement in this area have
been similar to those used to drive
action on climate change. The difference is
that, while climate and biodiversity are closely connected, climate impacts are
relatively easy to report, but biodiversity is a great deal more complex. There is no single metric, like carbon
emissions, and biodiversity is not spread evenly across the world, as
ecosystems are localised and heterogenous.
The lack of historical baselines for nature also makes it considerably
more difficult to measure and monitor.
As a result, many companies
are struggling to understand their own impact and exposure. According to a report by the Capgemini
Research Institute, only 24 percent of nearly 2,000 executives surveyed said
that their company has a biodiversity strategy. Most corporates are focusing on climate change
and consider biodiversity loss as a longer term risk.
Reporting Frameworks Evolving
To assist in the reporting process for nature, there is already a
bewildering number of measurement and reporting frameworks, with revisions and new
developments being announced at pace.
In May 2023, the Science
Based Targets Network (SBTN) released its first set of guidance documents on corporate standards for fresh water and land, which it
will trial with a group of 17 companies (including AB InBev, LVMH, Nestlé,
Tesco, Carrefour and H&M Group throughout the year. In September, the Taskforce on Nature Related
Financial Disclosures (TNFD) published its long awaited reporting and
disclosure framework for nature related dependencies, risks, impacts and
opportunities. And in January this year,
the Global Reporting Initiative (GRI) published a major update to its biodiversity
standard, recommending detailed, location specific reporting, both within a
company’s operations and throughout its supply chain.
Looking Forward
A positive feature of recent movements is that there has been considerable
effort by the standard setters to collaborate and build on each other’s
work. TNFD itself is very much based on
the established work of the Taskforce on Climate Related Financial Disclosures
and recommends disclosures in the same four categories: governance, strategy,
risk and impact management and metrics and targets. Moreover, its more recently announced
recommendations incorporate the latest disclosure standards announced in
July by ISSB. Similarly, in its updated
framework, GRI collaborated closely with TNFD and SBTN experts to ensure that
their guidance was aligned.
As ISSB, in its turn, increases its focus on addressing nature and
biodiversity, it is expected to move towards developing a global baseline that
local jurisdictions can build on for their own reporting frameworks. Regulators in Hong Kong, who have been
working to align local disclosure standards with ISSB’s initial standards on
sustainability and climate, are likely to follow closely.
On the occasion of the International Day of Forests, Friends of the Earth (HK) (FoE (HK)), one of a most prominent green groups in Hong Kong, is excited to announce our knowledge partner role as a member of the Capacity-building Alliance of Sustainable Investment (CASI), a new global initiative that aims to accelerate the development of sustainable finance in emerging markets and developing economies by providing quality learning programmes, technical assistance, and best practices. This initiative is a significant step towards fulfilling the goals of the Paris Agreement and the UN 2030 Agenda for Sustainable Development. This collaboration is a significant milestone for both organizations and opens the door to closer cooperation and knowledge exchange.
CASI was initiated by the Beijing-based
Institute of Finance and Sustainability and multiple organizations around the
globe, and officially launched at the 28th United Nations Climate Change
Conference. The Alliance will leverage the knowledge and distribution channels
of its member organizations, which will work together to develop and integrate
educational content, tailor learning programs to the specific conditions of
developing economies, and deliver them to a wider audience through their
networks. The learning programmes will cover various topics, including green
taxonomies, sustainability disclosure, financial products and governance,
policy incentives, carbon markets, and green project origination.
As a knowledge partner of CASI, FoE (HK) will leverage our expertise, experience in sustainable investment education, and strong industry network to support the alliance’s objectives and initiatives in capacity building. We are committed to contributing to CASI by conducting training programmes in Hong Kong focused on sustainable investment and green finance to nurture green finance talent for Hong Kong and neighbouring developing economies.
Plato Yip, Chairperson of FoE (HK), expressed our excitement about the partnership with CASI and stated: “Friends of the Earth (HK) as one of the first knowledge partner of CASI based in Hong Kong, will definitely work closely with the alliance to engage diverse audiences, promote sustainable finance, and cultivate ESG talents, assist to close the knowledge gap through co-hosting various capacity-building events to strengthen stakeholders’ ability to address industry challenges with CASI.”
Anthony Cheung, Vice-Chairperson and Green Finance Convenor of FoE (HK) concurred by saying: “CASI is a premier global platform which aims to expand global capacity and facilitate sustainable investment activity to EMDEs. We are excited about collaborating with CASI, an international organization, to deliver exemplary practices and offer valuable knowledge in learning programmes aimed at promoting the development of sustainable finance, which primarily benefits professionals from financial regulators and governments, financial institutions, service providers, and corporates that need to originate green and bankable projects.”
As a pioneering environmental group in Hong Kong, FoE (HK) is proud to be the first non-profit organization in the region to join CASI. Together, we will work with CASI to promote sustainable financial development and green investment opportunities at home and abroad through knowledge-sharing and training programs.
