What ABN AMRO can learn from the World Wildlife Fund

Many people know the World Wildlife Fund (WWF-NL) as a charity committed to nature conservation. What is less known is that WWF-NL also has valuable information about the impact of business on the state of nature worldwide. 'We map out what impact business activities have on nature and where biodiversity is at risk or can be helped,' says Avital van Meijeren Karp. This is knowledge that financial institutions such as ABN AMRO can put to good use when making sustainable choices, says Vincent Triesschijn, Global Head of ESG and Sustainable Investing. We're happy to enlist the help of organisations such as WWF. Their specialist knowledge of biodiversity risks is an important addition to the knowledge of ESG risks that our analysts and portfolio managers already have.' 

Van Meijeren Karp highlights the crucial role of financial institutions in the preservation of biodiversity. For example, by including biodiversity in the selection of investments, both sustainable and regular. As a lender, the bank can also set conditions for the sustainability of companies. Our nature is in a bad place, but taking this into account is not yet a matter of course in our system. It really requires different data, qualities and insights. 

For financial institutions such as ABN AMRO, the preservation of biodiversity is both a social and economic concern. Corporate activities can have a negative impact on the ecosystem of plants and animals in an area. For example, deforestation to produce palm oil, or clearing of land for mining. But the decline in biodiversity also has negative consequences for companies themselves,' emphasises Van Meijeren Karp. This is called dual materiality. After all, companies also depend for their operations on ecosystem services such as sufficient raw materials, fertile land and the availability of clean water. Without these things, they can't continue to operate normally. That has a direct impact on turnover and profits. A big risk for banks, she points out. For example, if companies are unable to meet their payment obligations and go bankrupt. 'The decline in biodiversity is therefore a major economic risk, with more than half of all economic activities directly dependent on natural resources.'

ABN AMRO wants to take biodiversity into account in its operations in various ways. Triesschijn cites the consequences of deep sea mining, for example. Various companies are exploring the possibility of extracting raw materials from the seabed. A dilemma: the seabed contains many scarce metals that are needed for the production of, for example, batteries for electric cars and solar panels. Crucial for the energy transition, but mining also causes environmental damage in the sea. With the help of WWF-NL's research, we now have a better understanding of the environmental damage that this form of mining can cause on the seabed. '

Van Meijeren Karp knows better than anyone how complex considerations surrounding biodiversity are. For example, biodiversity must always be protected locally. You cannot compensate for loss of biodiversity in the same way as for CO2 emissions. It makes no sense, for example, to plant a new forest to replace part of an ancient tropical rain forest. Biodiversity is also under pressure all over the world. Not only in the rainforest and other remote areas. In Western Europe, intensive agriculture is causing various animals and plants to disappear. The nitrogen crisis has taught us that.

One has to look at each situation to see what is to be done, says Van Meijeren Karp. A lot is possible because of the cooperation between different (financial) organisations. For example, we are working on a specific project together with a bank and a dairy company to encourage farmers to take more account of biodiversity on their land. It's a challenge, because agriculture is becoming more and more intensive due to cost pressures. It helps to reward farmers who demonstrably work in a sustainable way and thus contribute to the preservation of biodiversity. For example, by offering them a better price for their products or better credit conditions'. A good example of how financial institutions can integrate biodiversity into their business operations,' says Triesschijn. He sees a lot in collaboration. With the help of WWF-NL and other financial parties, we can share knowledge and together find ways to halt the decline in biodiversity. An appealing example is a project by an asset manager that uses satellites to identify illegal deforestation, for example in the cultivation of palm oil, cocoa and coffee. These satellite data makes it possible to call producers and their customers to account, or for example, to exclude them from investments. Van Meijeren Karp: 'Thanks to the satellite images and the close cooperation with the financial institutions that together represent billions in assets under management, we can stop deforestation in investments.'

WWF-NL believes that the financial sector has a key role in reducing biodiversity loss. Van Meijeren Karp: 'When local ecosystems collapse, it has a major global impact. On the economy, on local communities and on the results of financial institutions like banks. The good news is that preserving and restoring biodiversity also offers many opportunities. The World Economic Forum has calculated that the transition to a nature-positive economy will generate more than USD 10 billion in economic value. Especially in sectors such as food, infrastructure and sustainable energy. The economic opportunities that nature offers are enormous. Financial institutions have an essential role to play in taking advantage of them.

Vincent Triesschijn, Global Head of ESG and Sustainable

Avital van Meijeren Karp, Green Finance Specialist at the World Wildlife Fund