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).

On 9 September, in Brussels, former European Central Bank President Mario Draghi presented his report on the “The future of European competitiveness”. The document outlines the challenges that EU businesses face in being both productive and environmentally friendly. The Draghi report had been much anticipated and, following its launch, has generated intense debate among the range of stakeholders – especially on whether Europe’s ambitious climate targets and related policies are hindering EU economic growth. Planet Tracker and Carbon Tracker have identified four major points of discussion.

Access to Nutrition Initiative (ATNI) and Planet Tracker, in association with The Global Alliance for Improved Nutrition, have published a seminal Materiality of Nutrition Report. The first collaboration between ATNI and Planet Tracker sets the scene for a new conversation – how can healthier foods drive healthy profits, people and planet?

Materiality of Nutrition is the first collaboration between Access to Nutrition Initiative (ATNI) and Planet Tracker, in association with the Global Alliance for Improved Nutrition (GAIN). It sets the scene for a new financial markets conversation – how can healthier foods drive profits alongside the obvious benefits to people and planet? The report analyses 20 global food manufacturers with total revenues worth USD 6.63 trillion in 2022, representing 10% of the global food and beverage market, and compares the healthiness of their food product portfolios with their profits and market valuations. Considering the data limitations resulting from a small sample and limited company disclosures, the results are tantalising.

This blog updates the status of a selected range of environmental-related regulations following the European Parliamentary elections in June 2024. The non-exhaustive list of regulations ranges from nature restoration and anti-greenwashing requirements to waste, soil health, packaging and supply chain due diligence controls.

“Climate meets Nature” from UBS Asset Management and Planet Tracker provides a practical guide for industry practitioners on how best to integrate nature when looking at solutions for the global energy transition that is needed to meet global climate goals. The report focuses on three essential technologies in the energy transition: solar, wind and bioenergy.

The Global Ethical Finance Initiative (GEFI) are working with Planet Tracker (Lead Knowledge Partner – Nature Finance) and Carbon Tracker (Lead Knowledge Partner – Climate Finance) on the GEFI Insights Series. The Series aims to educate and inspire financial institutions and practitioners to align their strategies with climate and nature goals within the context of COPs 16 (biodiversity) and 29 (climate). This blog explores what is needed to manage the challenges of climate change mitigation and adaptation, and of the energy transition, following the widely accepted acknowledgement that COP28 in Dubai and the Global Stocktake did nowhere near enough on finance – and in particular on the needs of emerging and developing economies.

What are the key takeaways for financial institutions from the fourth negotiating round of the global plastic treaty? There are five key considerations: the scope of the treaty remains contentious; chemicals of concern will be discussed in the intersessional meetings; plastic production limits will not be discussed until late November; industry wants to avoid a producer pays approach to financing the plastic pollution clean-up; a record turnout of attendees.

As the fourth negotiating round of the global plastic treaty approaches, what should financial institutions be looking out for? There are five main considerations: are upstream petrochemical producers in scope; Will hazardous chemicals be called out; Will there be product restrictions? Who will finance the transition? Will the final treaty text be mandatory or voluntary? The implications for the financial markets could be significant.

The US Environmental Protection Agency (EPA) issued its Final Rule for Synthetic Organic Chemical Manufacturing Plants & Polymers & Resins. The aim of this rule is to reduce cancer and serious health effects from toxic air pollutants and smog-forming compounds. This is relevant to financial markets which are seeing externalities being converted into internal costs for corporates. Financial models may need reassessing.