Nature Positive Corporate Assessment Guide for Financial Institutions 2025

Financial institutions seek the following information from companies when assessing this indicator: –The specific actions identified by the company to achieve its nature ambition and targets across the mitigation hierarchy, within and outside of the business value chain, such as: –Actions to avoid impacts on nature loss, such as avoiding unsustainable or illegally harvested seafood and other marine resources in supply chains –Actions to reduce impacts on nature loss, including reducing nutrient runoff by decreasing fertilizer use –Actions to restore and regenerate so that nature can recover, such as increasing soil’s ability to retain water and sequester carbon through regenerative farming practices (fertility management, mulching) –Actions to transform underlying systems to address the drivers of nature loss, including harnessing supply chains to transform productive systems in line with science-based targets for nature (such as ensuring suppliers provide deforestation and conversion-free products) –Whether the companies are on track or whether their action plans need corrective action –Timelines for the actions (for example, three to five years) –The extent to which these actions may be effective in reducing nature loss and restoring nature, such as: –Extent to which these have been aligned to sectoral priority actions (see in Box 1 on sector reports and Figure 9 on sector priority actions) –Extent to which these contribute to GBF 2030 targets and 2050 goals as well as countries’ NBSAPs –Comparison of actions identified by the company with actions identified by other companies in the sector –Expected impact of the action on nature and measures of success –Whether companies engage with landscape stakeholders and rights holders (such as local communities and Indigenous Peoples) Existing frameworks that companies may be using: –Nature Strategy Handbook: Building on the ACT-D framework, the Nature Strategy Handbook provides guiding questions, recommendations and resources for developing a nature strategy.62 –Sector Actions Towards a Nature-Positive Future: This framework outlines sector-specific priority actions that companies should take to transform their business and meet the ambitions they set out as part of a credible nature strategy, including the Forum’s Nature Positive Transitions reports.63 –TNFD: The Discussion Paper on Nature Transition Plans provides guidance on what a nature transition plan should include under its implementation strategy.64 –WWF: The WWF report Catalysing Change: The Urgent Need for Nature Transition Plans includes strategy and actions as components in its transition planning guidance.65 –TPT: The advisory paper The Future for Nature in Transition Planning provides guidance on how nature can be included in transition planning.66 –GFANZ: Voluntary guidance, which is currently in consultation, provides insight on integrating nature into net-zero transition plans. This is supplementary to the Financial Institution Net-zero Transition Plans (2022) guidance.67 –Nature benchmarking initiatives state expectations around companies’ nature strategy and actions, such as Nature Action 10068 and WBA.69 How financial institutions are getting started: Although nature transition plans are not currently common, many companies have disclosed strategies and initiatives aimed at reducing their impacts and dependencies on nature, which 30 Nature Positive: Corporate Assessment Guide for Financial Institutions