Achieving a nature-positive economy requires a transition from abstract awareness to concrete action. The SUSTAIN project has developed a comprehensive library of outputs designed to guide businesses, financial institutions, and regulators through this journey. This outputs page is categorized into three sections: Thought Papers that explore the frontiers of nature-related risk, Blueprints that provide the technical architecture for integration, and Briefings that distill complex data into actionable strategies for decision-makers.

Thought Paper: Changing the Rules of the Game

In light of the adoption of the 2022 Kunming-Montreal Global Biodiversity Framework (GBF), developing an ambitious and effective enabling environment for engaging business on action for nature is an essential component of achieving Nature Positive. The current ‘rules of the game’ must be reformed and transformed to push economic systems towards being in harmony with nature and contributing to halting of biodiversity loss.

This paper by NatureSquared analyses the policy landscape as a whole and specific (predominantly EU-level) mechanisms to assess whether they will contribute to Nature Positive outcomes. For this assessment, desk research, an analytical framework based on the Nature Positive Principles (referred to as NPP 1 – 10), interviews, and validation workshops with leading experts have been held. From the 10 NPPs, three key principles that distinguish between Nature Positive and Do No Harm aligned policy instruments have been identified: Positive Outcomes (across value chains), Going Beyond (the migration hierarchy), and Dare to Transform (strategies and systems) – referred to as the three key Nature Positive principles.

The key findings and recommendations of this study can be summarized as follows:

• To achieve Nature Positive, nature harmful policies and incentives need to be eliminated or reformed and a paradigm shift is needed from Do No Harm to Nature Positive, in policy ambition and business action.
• The business and financial communities have demonstrated proof of concept for approaches that contribute to shifting towards a Nature Positive future, policymakers must now break the deadlock of the Triangle of Inaction to shape this future by changing the rules of the game and mainstreaming Nature Positive across policy aims.
• The three key Nature Positive principles need to be used to evaluate existing policy instruments and should be integrated into future policy development.
• A Nature Positive future can only be achieved using a whole-of-government approach, meaning policies and instruments across all levels and policy areas must be evaluated and reformed.
• Policy instruments should be assessed not only by their features but also by the specific properties thereof and on how they interact with other policy instruments.
• In addition to government, the financial sector is a key enabler of transformative change. By shifting investments and risk management practices, financial organizations have the power to accelerate Nature Positive outcomes. This can be catalysed by the financial sector itself, but even more so by financial regulators, with the right policy framework in place.
• To deliver on GBF Target 15, current disclosure regulation should be complemented with mandatory requirements to develop, disclose, and implement Nature Positive transition plans.

Blueprints

CPIC, in collaboration with South Pole, and other SUSTAIN partners, developed four investment blueprints to enable financial institutions seeking to positively impact biodiversity through conservation projects to understand existing investment frameworks better. 

CPIC blueprints are model financial transaction structures intended to help facilitate replicable investments in priority conservation projects. A blueprint describes the general enabling conditions necessary to facilitate project development, the stakeholders and their roles, the project outputs and expected conservation outcomes, the anticipated cash flows, and the types of investors and capital stacks that are required for a financial transaction that delivers both economic and conservation returns.

1. Transforming degraded land into productive forests through blended finance

This blueprint highlights Belterra’s use of a blended finance instrument and outlines the enterprise’s innovative business model. Operating through a financial support framework, through the implementation and management of agroforestry systems, Belterra delivers direct investment to small and medium-sized rural producers and assists the provision of loans from financial institutions to producers, while simultaneously generating high-integrity carbon credits.

2. Channeling private finance into habitat banking schemes in England

This blueprint highlights the RSPB’s use of a commercial debt instrument to refinance the acquisition of its habitat banking site, enabling delivery of habitat restoration in advance of income receipts, and freeing up the charity’s cash reserves to support its wider conservation efforts.

3. Impact investment unlocking equity for scaling the use of agricultural by-products for sustainable livelihoods

With the support of a low-interest loan from The Landscape Resilience Fund and Sustainable Trade Initiative (IDH) Farmfit Fund, Koa, a Swiss-Ghanaian social enterprise, leveraged this financing and the technical support that came with it to attract additional commercial investments. This strategic approach not only enabled the enterprise to scale its operations through increased production but also enhanced its conservation impact.

4. Channeling private finance into nature rewilding projects

Heal Rewilding, a UK nature recovery charity, leveraged a blend of concessional and commercial debt, as well as, public and private donations to acquire its first site in 2022 – Heal Somerset. To repay the loan and manage the site, Heal uses diverse repayment structures, including public and private sector land sponsorship, donations, and ecosystem services. This blueprint showcases how this blended debt structure can rapidly enable nature-led recovery projects on smaller sites.

Stakeholders Briefings

For businesses, financial institutions and regulators who are just starting their journey towards addressing nature-related issues, it is essential to first understand how the organization’s actions are leading to nature loss and which issues are most significant. 

As part of the SUSTAIN project, these briefings emphasize materiality screening as a key way to understand these issues and inform action in response. They highlight how this screening, using tools like ENCORE, can help organisations identify their nature-related impacts, dependencies and risks. 

Materiality screening is recommended by leading frameworks and initiatives such as Finance for Biodiversity Foundation, Taskforce for Nature-related Financial Disclosures, the ACT-D framework from Business for Nature, and Network for Greening the Financial System. Building on existing work in this space, the briefings aimto upskill organisations that are just beginning their nature journeys. They provide guidance on how to screen for materiality nature-related issues and what to do with these insights, including conducting further assessments, collaborating with stakeholders and developing organizational policies and strategies. 

Briefing for Business

This briefing is designed for non-nature experts in businesses. It recommends: 

1. Apply materiality screening, to identify potential nature-related issues (dependencies, impacts, risks and opportunities). 
2. Meaningfully engage relevant stakeholders and rightsholders to discuss all relevant nature-related issues and inform thresholds for materiality of potential risks.
3. Further assess potential and prioritize actual material nature-related issues.
4. Use assessment results to inform strategy and actions.

Briefing for Financial Institutions

This briefing is designed for non-nature experts in financial institutions (including banks, insurers, asset managers and asset owners). It recommends: 

1. Screen all portfolio and transaction data to identify potentially material nature-related issues (impacts and dependencies), such as by identifying high-risk locations and sectors. 
2. Take these insights further into deeper assessments for more granular data on transaction or portfolio-specific impacts and dependencies. 
3. Create or refine existing strategies to address nature loss in financing and enabling activities, such as risk management frameworks and capital allocation policies. 

Briefing for Financial Regulators

This briefing is designed for non-nature experts in financial regulators (including central banks and financial supervisors). It recommends: 

1. Screen for potential dependencies and impacts on nature.
2. Deepen your understanding of potential economic effects and material risks.
3. Use the results of your assessment to inform your strategy and actions.
4. Engage with financial organizations and other stakeholders on potential risks and actions.