This paper provides an overview for financial institutions of the most pertinent issues identified by Planet Tracker from the UN Biodiversity Conference (COP16) in Cali, Colombia. Topics range from the availability of nature transition plans, to who has responsibility for nature in government structures – it’s looking complicated, to the availability of nature data – or rather its processing and analysing. The struggle to finance countries’ nature and ecosystem services remained unresolved.

Dow, the global chemical company aims for carbon neutrality by 2050. However, analysis by Planet Tracker suggests Dow’s mid-term climate strategy is not ambitious enough to align with the well-below 2°C pathway, instead aligning closer to a 3°C warming scenario by 2030.
Based on Planet Tracker’s assessment, to meet the well-below 2°C pathway by 2030 and its 2050 carbon neutrality goal, Dow would need to set more ambitious reduction targets, clearly link its investments to emissions reductions, and improve transparency in its sustainability initiatives.

Executive Assistant

There is a nature financing gap. The precise numbers vary but plans to close the gap partially rely on the reallocation of harmful subsidies to nature-based solutions. This paper briefly examines whether such a strategy is realistic. We observe that a range of countries have successfully eliminated subsidies – so it can be done – but others failed. We need to learn how the former delivered subsidy reform, and why others were unsuccessful.

Financial markets spend much of their time focused on risk and return metrics. The generally accepted relationship is that one needs to take on more investment risk to realise a higher return. If the investor is unwilling to take on risk, they should expect to receive the risk-free rate – e.g. a risk-free bond. But this assumes efficient pricing. Planet Tracker believes that the risks of synthetic chemicals are not being correctly priced by financial markets. A reassessment of the risk premium applied to producers and users of these substances looks wise.

Planet Tracker joins with Vizzuality for a “nature footprinting” study which highlights the urgent need for corporations to improve supply chain traceability.

Planet Tracker and Vizzuality have partnered on a “nature footprinting” study, highlighting how external analysis can expose a company’s environmental risk hotspots, even without full procurement data. This report features Nestlé as a case study and underscores the critical role transparency plays across supply chains. With technology advancing, companies that don’t adopt advanced traceability systems are exposed to rising reputational risk.

On behalf of GEFI, Carbon Tracker Initiative and Planet Tracker, thank you for your interest in our Pre-COP16 (Biodiversity) / COP29 (Climate) webinar, that took place on Thursday 3rd October 2024.

As COP16 nears, the expectations for financial institutions to step up their efforts are higher than ever. The need for established frameworks, clear direction from governments, and the mobilisation of private finance are central to the discussions. COP16 presents an opportunity to refine the role of financial institutions in the global biodiversity agenda, ensuring that private finance is not only aligned with but actively driving the conservation efforts needed to address the biodiversity crisis. This blog explores what financial institutions need to know before the UN Biodiversity (COP16).

Report from Planet Tracker urges investors to address the financial risks associated with toxic chemicals, which are key drivers of environmental damage, as well as being responsible for chronic and acute impacts on human health.