{"id":39234,"date":"2026-05-22T17:52:59","date_gmt":"2026-05-22T15:52:59","guid":{"rendered":"https:\/\/www.co2news.sk\/?p=39234"},"modified":"2026-05-22T17:54:05","modified_gmt":"2026-05-22T15:54:05","slug":"integrating-biodiversity-and-nature-into-transit-financing-transition-to-a-sustainable-economy","status":"publish","type":"post","link":"https:\/\/www.co2news.sk\/en\/2026\/05\/22\/integrating-biodiversity-and-nature-into-transit-financing-transition-to-a-sustainable-economy\/","title":{"rendered":"Integrating biodiversity and nature into transit financing: Transitioning to a sustainable economy"},"content":{"rendered":"

The protection of biodiversity and nature is becoming an absolutely integral part of the global financial system. A message<\/span><\/a> The International Platform for Sustainable Finance (IPSF) of November 2025 presents a comprehensive framework known as \u201e"Transition Finance Plus"\u201c<\/strong> (Transit Finance Plus). This groundbreaking framework builds on the original 2022 principles, which focused primarily on climate change mitigation, and significantly expands them to include a critical dimension: the protection and restoration of nature and biodiversity. The main objective of this shift is to directly align all global financial flows with the ambitious goals of the Paris Agreement and, in particular, with The Kunming-Montreal Global Biodiversity Framework (GBF)<\/strong>. The GBF is focused on halting and reversing biodiversity loss by 2030, with its long-term vision by 2050 of creating a world in which society lives in complete harmony with nature.<\/p>\n

Systemic risks and regulatory environment<\/strong><\/p>\n

The degradation of nature and ecosystems poses a major systemic risk to the global economy. Financial risks related to nature are transmitted through complex supply chains and can be divided into physical risks (acute disasters or chronic loss of soil fertility), transit risks (associated with changes in regulations and consumer preferences), and overall systemic risks that can destabilize markets. Since virtually all economic sectors directly or indirectly depend on natural resources and ecosystem services, biodiversity loss acts as an endogenous risk within entire economies.<\/p>\n

Numerous mandatory and voluntary frameworks are currently emerging to address these threats. In terms of regulation, this includes, for example, the European Corporate Sustainability Reporting Directive (CSRD) and its specific standard ESRS E4<\/strong> for biodiversity and ecosystems, which requires companies to thoroughly assess their material impacts on nature based on the principle of dual materiality. On a voluntary basis, initiatives such as TNFD (Taskforce on Nature-related Financial Disclosures)<\/strong> a SBTN (Science Based Targets Network)<\/strong>. TNFD has introduced a methodology LEAP (Locate, Evaluate, Assess, Prepare)<\/strong>, which provides organizations with comprehensive guidance on how to locate their interactions with nature, evaluate their impacts and dependencies (DIRO), assess risks, and then prepare for their reporting and strategic management.<\/p>\n

An important concept in implementing all these requirements is the so-called principle of proportionality<\/strong>. This principle recognizes that the demands for corporate transformation must be proportionate to the size, resources and influence of each entity. Large multinational corporations and financial institutions should take a leadership role and actively assist smaller enterprises (SMEs) in their supply chains in addition to their own transformation.<\/p>\n

Target-setting principles<\/strong><\/p>\n

To ensure that entities\u201e transition plans towards a naturally positive future bring about real change, the \u201cTransition Finance Plus\u201d framework sets out nine voluntary key principles divided into two groups. The first four relate to the definition and setting of objectives themselves.<\/p>\n

Principle 1: Setting ambitious and aligned targets for climate and nature.<\/strong><\/p>\n

Organizations should formulate targets that are not only ambitious, but also scientifically sound and aligned with the global goal of halting biodiversity loss. This principle strongly emphasizes the need to take into account local specificities (Sub-principle 1.2), as risks and impacts on biodiversity, unlike CO2 emissions, are extremely site- and ecosystem-specific. It is also necessary to tailor measurable indicators (metrics), such as assessments of species richness, health and extent of key habitats, soil quality, and general ecosystem resilience.<\/p>\n

Principle 2: Goals must involve deep, rapid, transformative, and lasting change.<\/strong><\/p>\n

Since certain changes and losses in ecosystems are absolutely irreversible after crossing so-called tipping points, transformational actions by organizations must be prompt. Entities must create specific sector strategies that take into account their unique impacts, for example for areas with the highest impact such as agriculture, forestry or the mining industry. Plans must have clearly defined short-, medium- and long-term ambitions, and should directly address their most material and serious negative impacts on nature.<\/p>\n

Principle 3: The transition is multifaceted and comprehensive.<\/strong><\/p>\n

No sector is completely exempt from the transition to a sustainable economy. The goals set must directly influence all significant material activities of the company or investment portfolio. Companies and investors must be careful not to simply \u201emove\u201c their internal problems geographically to other supply chains (so-called problem shifting). At the same time, entities and regulators should recognize different \u201estages of transition\u201c in businesses, which allow them to categorize companies according to their maturity \u2013 from those that have no natural goals at all to those that have directly linked their entire business model to the preservation of biodiversity.<\/p>\n

Principle 4: Objectives must be compatible with each other and promote environmental and social synergies.<\/strong><\/p>\n

Addressing climate risks must not be done at the expense of nature and biodiversity. These two levels must be addressed together, which can be achieved, for example, by the widespread implementation of Nature-based Solutions (NbS)<\/strong>, which includes the protection and restoration of functional ecosystems that can bind carbon while protecting species diversity. The approach of the so-called just transition is also very important in this context. Strategies of companies that ignore social impacts risk massive resistance and loss of credibility. Therefore, participation and integration of the knowledge of local communities and indigenous peoples is essential when planning goals.<\/p>\n

Delivery principles<\/strong><\/p>\n

To ensure that transition goals do not remain just theory, "Transition Finance Plus" implements five additional implementation principles.<\/p>\n

Principle 5: Comprehensive and credible transition plans.<\/strong><\/p>\n

Any business plans must detail transition scenarios and include concrete actionable actions. This means using accurate metrics for data collection, life cycle assessments (LCA) to reduce carbon and environmental footprints, and leveraging innovative financing such as use-of-proceeds green bonds or biodiversity credits.<\/p>\n

Principle 6: Strong internal governance.<\/strong><\/p>\n

Without proper governance within the organization, transformation is not possible. The climate and nature conservation agenda must be controlled by the board (board-level oversight), which should include members with real knowledge in these sectors. The key is to ensure compliance with all internal regulations, implement training for management, define powers and, above all, align remuneration and bonus schemes so that KPI indicators are directly linked to sustainability achievements. There must be constant internal audits and error correction mechanisms.<\/p>\n

Principle 7: Active external engagement.<\/strong><\/p>\n

Environmental goals cannot be achieved in isolation. Financial institutions should help and guide their clients through tied products and technical assistance in decarbonization and environmental protection. Supply chains must also be pressured by companies to explicitly require their suppliers to source their raw materials sustainably and adhere to strict certifications.<\/p>\n

Principle 8: External reporting and communication.<\/strong><\/p>\n

The most important step towards public accountability is regular transparent reporting. This reporting should use the aforementioned recognized frameworks (such as TNFD or GRI systems) to make data from individual companies comparable for financial regulators, the public and investors. Entities must also find ways to make this information available for formal independent third-party verification (verification).<\/p>\n

Principle 9: Credible transition assessment and evaluation mechanisms.<\/strong><\/p>\n

Public market benchmarks and standardized tools designed specifically to measure portfolios\u2019 compliance with environmental goals must be developed to assess companies\u2019 progress. Established climate transition tools, such as the Paris Agreement Capital Transition Assessment (PACTA) methodology or the Climate Action 100+ framework, can be an excellent starting point for creating these new analytical and assessment mechanisms.<\/p>\n

Towards the future<\/strong><\/p>\n

The document, produced under the auspices of the European Commission and the European Investment Bank within the IPSF, is a major milestone. It provides a groundbreaking, comprehensive view that sustainable transition financing must not be limited solely to reducing carbon emissions. Given that the loss of many ecosystems would bring about the collapse of industries and unpredictable cascading shocks to the economy, the application of comprehensive planning is urgent. Although this framework is non-prescriptive and currently voluntary, it clearly points to the necessity of data interoperability, standardization of reporting and closer cooperation between policymakers and the private sector. Only a system-wide and deeply integrated economic transition will ensure the achievement of the GBF\u2019s global vision: an economy and society that successfully function in long-term harmony with nature. JRi&CO2AI<\/strong><\/em><\/p>","protected":false},"excerpt":{"rendered":"

Ochrana biodiverzity a pr\u00edrody sa st\u00e1va absol\u00fatne neoddelite\u013enou s\u00fa\u010das\u0165ou glob\u00e1lneho finan\u010dn\u00e9ho syst\u00e9mu. Spr\u00e1va Medzin\u00e1rodnej platformy pre udr\u017eate\u013en\u00e9 financovanie (IPSF) z novembra 2025 predstavuje komplexn\u00fd r\u00e1mec<\/p>","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[43],"tags":[],"class_list":["post-39234","post","type-post","status-publish","format-standard","hentry","category-biodiverzita"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/posts\/39234","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/comments?post=39234"}],"version-history":[{"count":3,"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/posts\/39234\/revisions"}],"predecessor-version":[{"id":39237,"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/posts\/39234\/revisions\/39237"}],"wp:attachment":[{"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/media?parent=39234"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/categories?post=39234"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/tags?post=39234"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}