Financial institutions are regulated domestically by various bodies including central banks, financial supervisors and ministries of finance. They are also influenced by multilateral standard-setting organisations such as the Network for Greening the Financial System (NGFS) and the Coalition of Finance Ministers for Climate Action (CMFCA).

In addition, global bodies like the United Nations, the G7 and the G20 shape local and international policies that directly impact financial markets and financial institutions. And multilateral development banks (MDBs) impact the financial markets in the countries in which they invest or finance.

Encouraging and supporting ministries of finance, MDBs, and the G20 to align their visions and policies with a resilient, net-zero, nature-positive agenda is a critical part of our work on greening global finance and reshaping financial system architecture so that it delivers on global goals on climate, nature and development.

Here are some examples of our work.
 

Greening Financial Regulation Initiative

 

Through our Greening Financial Regulation Initiative, we engage central banks and financial supervisors to integrate climate and environmental risks into decision-making, providing research, tools, support and training to help achieve global sustainability goals. Find out more here.
 

Engaging public development banks

 

Banking on Nature-Positive

Our 'Banking on Nature Positive' report, for example, offers a five-point plan for how public development and commercial banks can collaborate on a 'whole-of-banking' approach and accelerate the shift to a global nature-positive economy by:

• enhancing transparency through robust data sharing;
• defining what it means to be nature-positive;
• fostering innovative financial solutions;
• mobilising collective action;
• building the internal capacity necessary for meaningful change.

The top 100 international banks and the largest public development banks control almost $150 trillion in assets – more than the world’s annual GDP. Together, the banking sector can help drive the nature-positive transition by providing the necessary funds for governments, corporates and project developers to build a nature-positive economy.

 

Recommendations for MDBs

In 2022, the G20 established an independent review to evaluate MDBs' capital adequacy and offer recommendations for reform that would unlock more financial resources in support of their missions. Our view is that this provides a unique opportunity for MDBs to align their activities and mandates with the Paris Climate Agreement and the Kunming-Montreal Global Biodiversity Framework by:

• recognising and committing to act on global climate change, biodiversity loss and poverty, in accordance with the MDB joint nature statement;
• improving environmental and social risk management frameworks and their applications;
• setting ambitious short-, medium- and long-term net-zero, nature-positive targets and delivering on them;
• using their influence to advance a resilient, net-zero, nature-positive agenda.

 

Global Roadmap for a Nature-Positive Economy

WWF's Global Roadmap for a Nature-Positive Economy takes a pragmatic approach to transformation, setting out an agenda for action to reshape our economies and secure our future on this planet. Find out more here.