Nature provides us with everything we need to survive, from raw materials such as wood, minerals and food to a range of ecosystem services such as pollination, water purification and climate regulation.

Our societies and economic activities are dependent on nature and have an impact on it, either directly or indirectly through their value chains. It is of strategic importance for us to work towards strengthened biodiversity, as it has an impact on the ecosystem services that our customers and future societal development depend on.

Global Biodiversity Framework

In December 2022, the Kunming-Montreal Global Biodiversity Framework (GBF) was adopted at the UN Biodiversity Conference (COP15). The aim was to address biodiversity loss, restore ecosystems and protect indigenous rights through specific targets, both short-term and long-term, to halt and reverse biodiversity loss by 2030 and 2050 respectively.

Swedbank was one of the 154 financial institutions that advocated for the adoption of the framework in December 2022. The framework is important, as it provides a clear roadmap and offers concrete targets that financial institutions can work towards.

We have analysed the targets in the framework and identified those that are most relevant for our operations, to strategically direct our efforts towards the areas where we can have the greatest impact. 

Innovative ways to finance the protection of nature 

The finance industry can play an important role in addressing biodiversity loss, for example by integrating nature-related financial risks in business decisions. Financial institutions can also develop impact funds, advisory services or other innovative solutions that focus on enhancing biodiversity.

To contribute to research and development in this area, Swedbank has participated in a research study at the Swedish University of Agricultural Sciences. The focus has been on developing a method for calculating biodiversity credits to preserve and promote biological diversity in Swedish forestry. The pilot project involves our acquisition of biodiversity credits from Orsa Besparingsskog, with the goal of understanding whether these instruments can constitute a viable financial solution for incentivising the protection of biodiversity.

Contribution to common knowledge

Collaboration is needed to develop a shared understanding around the common implementation strategies, and the tools and methodologies to be used. Therefore, we are invested in being part of various collaboration efforts and research projects focused on biodiversity.

In 2022 and 2023, Swedbank participated in a pilot project, coordinated by the United Nations Environment Programme Finance Initiative (UNEP FI), to test the Taskforce on Nature-related Financial Disclosures (TNFD) framework. The TNFD is an international framework designed to help organisations report and act on nature-related risks and opportunities. As part of the pilot project, we followed the TNFD’s Locate, Evaluate, Assess and Prepare (LEAP) approach to map and analyse nature-related risks and opportunities in our loan portfolio for the forestry and agriculture sectors.

Swedbank is also active in other initiatives such as:

• Mistra BIOPATH, a research programme exploring existing and novel approaches for integration of biodiversity considerations into financial decision-making.
• Business@Biodiversity Sweden, a cross-sectoral network for organisations committed to biodiversity protection.
• the PRB Biodiversity Community, a capacity-building program designed to support Principles for Responsible Banking (PRB) banks starting on their biodiversity journey.

Climate change and biodiversity

Nature loss and climate change are interlinked – one exacerbates the other. Financial institutions have an important role to play to manage global environmental challenges that affect us and future generations.

It is important for Swedbank to enhance biodiversity and combat climate change. This is in line with our vision of a financially sound and sustainable society. By systematically integrating nature-related issues into our business strategy, risk assessments, decision-making and policies, we can contribute to a more sustainable economy, the UN Sustainable Development Goals, the Paris Climate Agreement, and the goals of the Global Biodiversity Framework.