ABOUT THE NATURAL CAPITAL FINANCE ALLIANCE
The NCFA is the leading platform for collaborative finance sector leadership in addressing natural capital.
The first Rio Earth Summit in 1992 saw governments set a groundbreaking agenda for tackling environmental issues including biodiversity (CBD), climate change (UNFCCC), and desertification (UNCCD). These efforts developed into partnerships with the private sector – resulting in public-private sector leadership in addressing the material impacts of widespread ecosystem degradation on the economy as a whole.
These economic impacts are particularly relevant to financial institutions, who are not only exposed to the risks that result from environmental degradation, but are uniquely positioned to address natural capital issues through the profound economic influence they wield and the opportunities they can derive from the development of products and services needed in a 21st century economy.
The Natural Capital Declaration (NCD) has four main commitments
Within this context, the United Nations Environment Programme Finance Initiative (UNEP FI) – a public-private partnership between the UN and the financial sector – worked with Global Canopy and Fundacao Gerulio Vargas (FGV), the leading Latin American business school, to launch the Natural Capital Declaration at the UN Conference on Sustainable Development (Rio +20) in 2012.
The Natural Capital Declaration (NCD) has four main commitments:
- to build an understanding of the impacts and dependencies of natural capital on operations, risk profiles, customer portfolios, supply chains, and business opportunities;
- to support the development of methodologies that can integrate natural capital considerations into the decision-making process of all financial products and services;
- to work towards building a global consensus for the integration of natural capital into private-sector accounting and decision-making;
- to collaborate, when appropriate, with the International Integrated Reporting Council (IIRC) and other stakeholders to build a global consensus around the reporting of natural capital considerations.
Since its launch, the NCD has been signed by the CEOs of more than 40 financial institutions, demonstrating their commitment to the integration of natural capital considerations into financial sector reporting, accounting, and decision-making by 2020.
The Natural Capital Finance Alliance (NCFA) supports the practical implementation of the commitments made by the signatories to the NCD and works to encourage incorporation of natural capital considerations in the finance sector more broadly.
The NCFA is made up of financial institutions and other partners – all of whom are working together to drive innovation and develop the tools required to better understand risks, pursue opportunities, and establish the foundation for sustainable long-term economic growth.