Project
Biodiversity-related risks and opportunities to the financial sector
A unique project was launched to estimate the financial impact of biodiversity loss and determine the most important measures to reduce and recover biodiversity. Wageningen University and Research (WUR) researchers led by Wageningen Economic Research and the Foundation for Sustainable Development (FSD) together with six private partners from the financial sector, namely Allianz Group, APG, Commerzbank, ING, ORTEC Finance and Deloitte with both Deloitte Risk Advisory BV Netherland and the Deloitte Sustainability & Climate GmbH Germany as lead private partner, will develop a state-of-the-art methodology for biodiversity impact assessments.
The project is a ground breaking initiative addressing a critical gap in biodiversity financing. Now, more than ever, the financial sector needs robust tools to understand and mitigate the impacts of biodiversity loss. This PPP's unique approach aligns science-based future biodiversity and financial scenarios, utilizing advanced economic modelling techniques to provide comprehensive monetary estimates of biodiversity effects on the economy at the country and sector levels.
WUR brings long-standing expertise in integrating science-based future scenarios with economic impacts, offering detailed insights into how biodiversity loss affects various sectors. This project stands out by delivering these insights and developing an additional, comprehensive dataset on possible abatement and restoration measures and their cost-effectiveness.
By working closely with financial industry stakeholders, this PPP ensures that the developed data and methodologies are scientifically rigorous and practically applicable. This Public-Private Partnership is uniquely positioned to drive significant change in how the financial industry perceives and responds to biodiversity-related risks and opportunities, making this initiative both timely and essential.
Why this Public-Private Partnership (PPP)?
An estimated biodiversity financing gap of US$ 598-824 billion per year exists. Bridging this gap necessitates a partnership between the public and private financial sectors. This PPP project plays a crucial role in establishing such a partnership by providing location and sector-specific monetary figures on:
- Sectoral and country-level economic effects of biodiversity loss to assess the impact and risks of the financial sector.
- Measures to abate and restore biodiversity loss, specifically assessing cost-effectiveness and providing investment estimates to accelerate strategic opportunities.
This collaboration aims to address the most significant ecosystem services, sectors, and specific major countries for the private sector.
To build a resilient financial sector and effectively finance the adaptation to and mitigation of biodiversity loss, it is essential to have location and sector-specific quantities and monetary figures. With Deloitte and the participating financial sector stakeholders, the research finds direct applicability to standard risk, market, strategy and reporting processes. The project will close current gaps in available data, scenarios and assessment methodologies to build a state-of-the-art framework for the financial industry.
Join us
The collaboration between public organisations and private sector stakeholders is essential for transformative change. We are inviting partners in the private sector to join this project. These include banks, insurance and other financial institutions.
Why you should join a Public-Private Project:
- Receive the latest scientific insights from WUR experts applied to your business
- Have access to a business network with a shared goal
- Gain insights on a subject that is too large and complex to tackle alone
- Benefit from collaborative partners’ knowledge and experience
- Receive greater returns on your investment by joining forces with partners
Our earlier collaboration
We have been collaborating with Allianz to develop an innovative quantitative estimation tool that allows us to assess the monetary impact of biodiversity loss at the country-sector level. Learn more: