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In Japan, a growing number of businesses are adopting a global framework that assesses, reports, and acts on environmental risks and impacts, with the aim of shifting financial flows into more eco-friendly outcomes. It’s part of a slowly emerging trend worldwide.
Across the globe, interest in nature-positive economies has piqued.
With the primary aim of shifting financial flows into projects that tackle land degradation, biodiversity loss, and the climate crisis, they’ve slowly been emerging as an appealing way for governments, banks, and corporations to offset their carbon footprints.
Nature-positive economies are good for planet and people, helping to safeguard and restore our ecosystems while enabling sustainable development for local communities.
They work by funnelling funds from businesses – required to adhere to the Kunming-Montreal Global Biodiversity Framework, which assesses, reports, and acts on a company’s environmental risks and impacts – into conservation efforts.
In other words, they guarantee we’re investing in nature and forging a global economy that’s nature-positive as well as net-zero.
Reforms include changing the ‘rules of the game’ so we move away from a global economy that’s based solely on the pursuit of indefinite production and consumption responsible for ecological breakdown.
Our economies are dependent on and embedded in nature, so the overarching goal is for natural resources and nature’s services to be properly valued, and environmental externalities properly disclosed, priced, and built into financial markets.
‘Historic underinvestment in nature has resulted in substantial private-sector investment opportunities in climate, land, and agriculture,’ CEO of Climate Asset Management, Martin Berg, tells McKinsey & Company.
‘Because costs for protecting and restoring nature are still externalised, transition funds will need to be invested into projects while corporate demand is built. Nature is the next obvious investment trend. We are seeing investment prospects increase for more sustainably managed land as well as regenerative foods and agriculture.’
