Biodiversity
Ateles geoffroyi in Nicaragua. Photo: MLR Forestal
Biodiversity loss is a significant threat to the well-being of the planet and the sustainable development of societies and the economy. Companies and investors can actively protect and strengthen biodiversity through their own activities. Correspondingly, strengthening biodiversity can create new business opportunities and reduce business risks.
Finnfund is committed to strengthening the well-being and diversity of nature and to mitigate possible nature and biodiversity risks in its investment activities.
Nature and biodiversity statement
In August 2024, Finnfund adopted a Nature and biodiversity statement that complements Finnfund’s sustainability policy and the previously published climate and energy policy.
Finnfund is committed to:
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Ensuring no net loss of biodiversity in our investments
Finnfund invests in companies whose operations do not cause negative net effects on biodiversity. The risks and opportunities related to nature and biodiversity are assessed for each investment decision, and they are monitored and managed throughout the investment’s life cycle. Special attention is paid, for example, to the protection of critical and natural habitats and to the rights of indigenous peoples and other local communities and cooperation with them.
Since 2005, Finnfund has evaluated and minimized risks related to nature and biodiversity in its investments using the IFC Performance Standards framework.
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Developing and foster nature and biodiversity net-gains
Finnfund seeks investment opportunities that develop and implement solutions contributing to the goals and targets set by the Kunming-Montreal Global Biodiversity Framework (GBF), including mechanisms that address both biodiversity loss and climate change, both directly and indirectly affecting the drivers that cause and accelerate them. These drivers of biodiversity loss, identified by IPBES, include, for example, land and sea use changes, pollution, invasive species, or unsustainable use of natural resources.
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Promoting more systematic, harmonised, and transparent nature-related financial disclosures and reporting
Global frameworks and standards to identify, monitor, report, and disclose biodiversity- and nature-related risks and impacts are just becoming established. Finnfund is committed to pushing for more systematic, harmonised, and transparent nature-related financial disclosure and reporting practices both in its own operations and to encourage the companies it finances and other investors to do the same.
In 2024, Finnfund committed to the Taskforce on Nature-related Financial Disclosures (TNFD) initiative. Finnfund’s TNFD reports will be published as part of the Annual Report.
You can read the full text of the statement here: Nature and biodiversity statement (pdf)
Read more:
MLR Forestal: Sustainable agroforestry in Nicaragua – Finnfund