Presented by Caroline van Leenders (LNV/RVO), Wijnand Broer (CREM), Roel Nozeman (ASN Bank) and Sylvia Wisniwski (Finance in Motion) https://events.globallandscapesforum.org/agenda/luxembourg-2019/how-to-measure-the-positive-impact-on-biodiversity-of-an-investment/

1. How to Measure the Positive Impact on Biodiversity of
an Investment?
GLF Luxembourg 2019, November 30th 14:00 - 15:15
UTC – Salle E
Caroline van Leenders (LNV/RVO)
Wijnand Broer (CREM)
Roel Nozeman (ASN Bank)
Sylvia Wisniwski (Finance in
Motion)

2. Timetable
• 14:00 – 14:15 Introduction by Caroline van Leenders on the state of
affairs with biodiversity in the financial sector
• 14:15 – 14:40 Wijnand Broer and Roel Nozeman on biodiversity
positive investments & footprinting and practical example of ASN
bank
• 14:40 – 14:55 Sylvia Wisniwski from Finance in Motion on a
practical example of biodiversity conservation through an impact fund
• 14:55 – 15:15 Interactive discussion

3. Landscapes and Dutch
government:
• African Landscape Action Plan
• The LIFT tool
• Green bond for landscape restoration
Landscape approach for biodiversity
• Finance For One Planet

4. Climate change is the trojan horse

5. Difference climate and
biodiversity
1. Awareness:
hurricanes and fires
2. Ambition: a goal on
temperature
3. Methodologies:
carbon measuring
4. Scale: global

6. Usual way
of thinking about
the relation
between financial
institutions and
ecosystems
Source: Finance for One Planet, RVO 2016

7. Reversing it
leads to
a new paradigm
on time and
scale
Source: Finance for One Planet, RVO 2016

8. Important milestone:
2020 super year for
biodiversity
• Include non-state actors
• Possible commitments for financials:
 Articulate ambition for biodiversity
 Publicly report on biodiversity impact
 Develop action plans for biodiversity
 Apply Natural Capital thinking
 Support a Task Force Nature related
Financial Disclosure
 Endorse the New York Forest
Declaration, the AgWater Challenge
and the New Plastic Economy
 And more…
• Landscape approach is missing in CBD

9. sli.do
Multiple Choice: Who is in the room?
a. Government
b. Financial sector
c. Landscape organization / NGO
d. Consultant
e. Student
f. Other
Open question: What do you expect to learn?
Word Cloud: What is a key term you associate with the financial sector?

10. • 3 pillars: Climate, Human rights and Biodiversity
• Cooperation in platforms and methodology development
• Long term goals
ASN Bank & Sustainability

11. • In 2014: Vision for Biodiversity at ASN Bank in 2030
• Where to start? Stakeholder consultation
• Development and testing of BFFI methodology: a Pilot footprint
• Long term goal
The biodiversity footprint of a financial institution
(BFFI)

12. 7 & 8 November 2019 #BusinessNatureSummit
Finance target

13. Multipe choice sli.do
Target setting:
• Should a financial institution set audacious goals regarding impact on
biodiversity or wait with this until the data and methodology is fully
developed?
• Set aspirational goals and learn by doing
• Wait until better data and methodology is fully developed

14. • PCAF now adopted by 57 financial institutions with total financial assets of $3.5 trillion
• In 2020 ASN Bank and others will start PBAF (Partnership for Biodiversity Accounting Financials): The
first focus will be on positive impacts on biodiversity.
Interested? Contact: roel.nozeman@asnbank.nl

15. Biodiversity
Footprint
Financial
Institutions
(BFFI)

16. Multipe choice sli.do
• Biodiversity footprinting is necessary to identify and manage
trade-offs from an investment strategy based on carbon alone.
• Agree
• Disagree

17. From a footprint towards a net gain

18. The mitigation Hierarchy
Exclusion
Investment
criteria
Impact
investing

19. Positive impacts on biodiversity
• What is a biodiversity positive investment?
An investment resulting in:
….an increase in biodiversity (e.g. restoration)?
….reduction of negative impact (e.g. good agricultural practices)?
….avoidance of a negative impact (e.g. green energy)?
• Can all of these be used to reach a not-net-loss or net-gain?
• Positive compared to what?
Positive impacts in the BFFI

20. Positive impacts on biodiversity
Use of what is already out there
BBOP, GIIN / IRIS+, CPIC, UNEP-FI, PCAF, STAR, etc.
How can this be used to:
• define biodiversity positive impacts
• measure or calculate impact
• integrate this in the biodiversity footprint financial institutions
• reach a common ground
Identify follow-up steps

21. Positive impacts on biodiversity
Investments with the aim to contribute to (‘impact investing’):
• Investments in the enhancement of existing biodiversity
• Investments in the restoration of biodiversity to a specific prior state
• Reduced negative impacts on biodiversity by addressing one or more of the
drivers of biodiversity loss of existing economic activities
(how to deal with certification?)
• Avoided negative impacts on biodiversity by addressing ‘green’ energy or
resources, alternative livelihoods (preventing biodiversity loss) or known future
risks to biodiversity
• Investment criteria & Engagement

22. Multipe choice sli.do
• Investments that include independent and biodiversity relevant
standards in their investment criteria (e.g. FSC, MSC, RFA) should be
rewarded for this in calculating a biodiversity footprint, even if
impact-data for these standards are still lacking.
• Agree
• Disagree

23. Some recommendations
• Investments in a reduction/avoidance of negative impact
 no net loss
• Investments in an increase in biodiversity  net-gain
• Positive impacts from certifications like FSC preferably
included in the footprint, even if data are still lacking
• Different types of positive impact should be reported
separately
• Negative impacts and positive impacts should be
reported separately https://www.government.nl/documents/rep
orts/2019/09/25/report-positive-impacts-
in-the-biodiversity-footprint-financial-
institutions

25. biodiversity conservation through an impact
fund
The eco.business Fund
Luxemburg, 30 November 2019

26. About the
eco.business Fund
01

27. •The eco.business Fund aims at promoting
business and consumption practices that
contribute to biodiversity conservation
and the sustainable use of natural
resources through the provision of
dedicated financing and technical
assistance.
Finance for Biodiversity Conservation
The eco.business Fund

28. Flow of Funds
Financial Institutions
Donors
Dedicated
Financing
Funding
Direct Investments
Sponsoring Technical Assistance
Target Group
Real-Sector
Intermediaries1
Investors
1 Only applicable to the eco.business Sub-Fund for sub-Saharan Africa

29. 1 Additional countries to become eligible in phase 2 for eco.business Sub-Saharan Africa
Chilean Winter
Rainfall-Valdivian Forests
Tropical Andean
Tumbes-Choco
Mesoamerican
Caribbean Islands
Cerrado
Atlantic Forest
Guinean Forests of
West Africa
Succulent
Karoo
Madagascar and
the Indian Ocean
Islands
Horn of Africa
Cape Floristic Region
Maputaland-Pondoland-Albany
Eastern Afromontane
Coastal Forests of Eastern Africa
Countries of focus
Additional eligible countries1
Biodiversity hotspots
Countries not eligible
Approach to Impact: Regional Focus
• Biodiversity hotspots are highly biodiverse ​areas endangered by human activity.
• These areas host a vast amount ​of irreplaceable, endemic species not ​found anywhere else in the world.​

30. Sustainable Forestry Sustainable Tourism
Sustainable Agriculture and Agri-processing Sustainable Fisheries and Aquaculture
Approach to impact: Sectoral focus
eco.business Fund
Priority Sectors
The eco.business Fund
aims at focusses on those
economic sectors that are
highly consumptive of
natural resources – and
affected by climate change.

31. “Green List” Activities
Follow good practices and investment
guidelines that have a significant
positive impact on conservation and
are included on the fund’s
“Green List”
Approach to impact: Eligibility Criteria for the
Final Target Group
Selected Projects
Non-standardized measures with a high
impact on biodiversity conservation, the
sustainable use of natural resources and
climate change mitigation and adaptation
Corporate Sustainability Standards1
Meet the eligible sustainable
production and sourcing standards
from international commodity
purchasers
End borrowers must meet at least one of the criteria below
Voluntary Sustainability Standards
Hold one of the more than 30
certifications for sustainable
production approved by the fund, e.g.
Rainforest Alliance, Forest
Stewardship Council, etc.
1 Applicable to the eco.business Sub-Fund for sub-Saharan Africa only; Eligibility dependent upon approval by fund

32. •Maximizing and deepening the impact
through customised capacity building
and consulting services, including on:
• Improving environmental and social
risk management
• Developing impact management
systems
• Enhancing monitoring systems
(including through satellite)
• Training loan officers on sustainable
lending practices
• Working with producers to equip
them with tools to enhance
sustainability of their operation
Approach to impact:
Building Capacities

33. Growing Impact
02

34. impact Pathway
Biodiversity
Conservation
Sustainable Use of
Natural Resources
Climate Change
Mitigation and Adaptation
Socio-Economic
Improvements
Final Impact
Impact on Investment
and Production
Environment
Activities
Promote Change in
Practices of Financial
Institutions
Promote Change in
Business and Production
Practices
Facilitate an Enabling
Environment for a
Greener Economy
Provide Dedicated
Funding
Provide Technical
Assistance
Stakeholder Dialogue and
Cooperation
Contribution to
SDGs
Raise Public and Private Capital

35. Impact assessment Approach
Impact assessment is
a key component of
our work. The fund
combines a range of
data sources to track
progress against its
key performance
indicators.
eco.business Fund
Sub-loan Data &
Fund Monitoring
Third Party
Evidence (incl.
VSS)
Assessing
Impact
Impact
Claims
Field
Visits
eco.business Fund
Case Studies

36. •The eco.business Fund utilizes two indi
cators to assess its contribution to the
preservation of ecosystems
and biodiversity:
i. the
hectares of agroforestry supported
as a proxy indicator for biodiversity-
rich areas
ii. a biodiversity score as an average
measure of the biodiversity present
in the farms and forestry plantations
supported by the fund, relative to
the biodiversity present in pristine
ecosystems
Focus: Assessing
Contribution to
Biodiversity Conservation

37. • Casal is a 255 hectares family-run coffee farm and mill
in
El Salvador receiving financing from Banco Hipotecario
to modernize its ecological coffee mill and to renovate
its plantations of shade grown coffee.
• In El Salvador, where native forests represent only 2%
of the territory, coffee forests are one of the few
remaining refuges for biodiversity.
• The presence of wild frogs, tiger cats, deer and foxes on
Casal’s plantations provides concrete evidence of the
benefits of this agroforestry system.
• Through the fund’s promotion of shade-grown coffee,
farms like Casal are supported to preserve biodiversity
in coffee producing regions.
Example: Preserving
ecosystems and
biodiversityCasal, a Sustainable Coffee Plantation and Mill in El
Salvador

38. •Measuring environmental impact and promoting a
sustainable coffee sector through technology, including
through
• Strengthening environmental monitoring of
production practices using drones, satellite images,
and soil analysis
• Improving the risk scoring system by including
environmental variables in the evaluation.
• Identifying activities that could reduce the risk of
extinction of endangered species on coffee farms, via
the IUCN Biodiversity Return on Investment Metric
methodology
Example: Supporting
Financial Institutions
Strengthening biodiversity monitoring at Banco
Hipotecario

39. Initiated by
Thank you for your attention

40. Final Environmental and socio-economic
impact
159,000 hectares
of farm land under
sustainable
management
5.5 million tons
of absolute CO2 stock
maintained by agroforestry
and forestry systems
4.2 million cubic
meters
of irrigation water saved
280,000
direct jobs supported
69,210 m3
liquid waste treated or
recycled
30,000 liters
of herbicide use avoided
81,000 hectares
of farmland under soil
conservation practices
471 hectares
of soil erosion avoided
Since its inception
in December
2014, the
eco.business Fund
has contributed to:
All figures as of 30.06.2019 based on eco.business Fund activities in Latin America

41. Multipe Choice sli.do
a. Only direct investments: direct investments which contribute
to more biodiversity (for example: landscape restoration)
b. Direct investments + direct reduction: investments in the
reduction of negative impacts (for example: pro-biodiversity
investments in agriculture)
c. Direct investments + direct reduction, and indirect reduction:
investments with an indirect reduction of negative impacts (for
example: investing in green energy)

42. Thank you!
Any questions left? Please ask!

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