‘Connecting Finance and Natural Capital: A Supplement to the Natural Capital Protocol’ (the Supplement) has been launched during an event at the Hong Kong Institute of Certified Public Accountants. The Supplement provides a framework for financial institutions (FIs) to assess the natural capital impacts and dependencies of their investments and portfolios.
This framework has been developed by the Natural Capital Coalition (the Coalition), Natural Capital Finance Alliance (NCFA) and the Dutch SIF VBDO. The Supplement was developed against the backdrop of growing acknowledgment that the natural systems that underpin the global economy are deteriorating past the point of effective service provision, and that this will have potentially significant consequences for many businesses, and subsequently, for those who have financed or insured them.
The Supplement will guide FIs through the process of identifying, measuring and valuing material risks and opportunities as a means of informing financial decision making.