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1、Towards Nature Positive:Corporate and Financial Institution Practices in China I N S I G H T R E P O R TD E C E M B E R 2 0 2 3In collaboration with PwC ChinaImages:Getty Images,Unsplash 2023 World Economic Forum.All rights reserved.No part of this publication may be reproduced or transmitted in any
2、 form or by any means,including photocopying and recording,or by any information storage and retrieval system.Disclaimer This document is published by the World Economic Forum as a contribution to a project,insight area or interaction.The findings,interpretations and conclusions expressed herein are
3、 a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum,nor the entirety of its Members,Partners or other stakeholders.ContentsForewordExecutive summary1 Business depends on nature
4、and biodiversity 2 The corporate journey from understanding to nature-positive action2.1 The nature-positive journey for business2.2 Quantification is a key challenge2.3 Assessing and disclosing business impacts and dependencies on nature and biodiversity2.4 Examples of corporate biodiversity-relate
5、d commitments in China3 Financial institutions nature and biodiversity risks and opportunities3.1 Managing financial institutions biodiversity-related risks3.2 Nature-and biodiversity-related opportunities for private sector financing4 Enabling environment:public sector mainstreaming of nature and b
6、iodiversity4.1 Biodiversity-inclusive spatial planning4.2 Assessing the value of ecosystem services4.3 Public funding for nature and biodiversity protection4.4 Creating an enabling market environment for nature-positive business and investment decisions4.5 Examples of public-private collaborative ac
7、tions to protect and restore nature and biodiversityConclusionAppendicesA1 Exposure of stock exchanges to nature-related riskA2 Frameworks and guidance for businesses to manage nature-related risks and opportunitiesA3 Potential for business opportunities and jobs from Chinas nature-positive transiti
8、onContributorsEndnotes45732327292930303374041Towards Nature Positive:Corporate and Financial Institution Practices in China3ForewordAt COP15 in Montreal in December 2022,under the presidency of the Chinese government,196 countries adopted the Kunming-Montreal Global Biodiversit
9、y Framework(GBF)aiming to halt and reverse biodiversity loss by 2030.The GBF is a significant milestone for the conservation of the worlds biodiversity and ecosystems,and has been hailed as the equivalent to the Paris Agreement on climate.The stakes could not be higher.Biodiversity is declining fast
10、er than at any time in human history.One million plant and animal species are now threatened with extinction,many within decades.1 Of the 18 categories of ecosystem services on which businesses,economies and societies depend,14 are in decline.2 More than half of the worlds GDP,or$58 trillion,is high
11、ly or moderately dependent on nature.3 Natures deterioration and the associated biodiversity loss pose critical risks that companies cannot afford to be complacent about.Target 15 of the GBF aims to ensure that large companies and financial institutions monitor,assess and disclose their risks,depend
12、encies and impacts on biodiversity throughout their operations,portfolios,supply and value chains.This report showcases early-moving companies and financial institutions in China that are taking proactive steps to transition towards nature-positive business practices.It aims to inspire the business
13、community to make these niche behaviours become mainstream in the coming years.Additionally,the report sheds light on public-private multistakeholder approaches to ecosystem conservation and restoration,as well as highlighting how the public sector is creating an enabling environment for nature-posi
14、tive business models by integrating biodiversity considerations into policy-making decisions.Ultimately,every company will face the consequences of nature and biodiversity loss,and will be required to take action.With over half the worlds economy dependent on nature,the cost is simply too high to ig
15、nore.Raymund Chao Asia Pacific Chairman,China Chairman and Chief Executive Officer,PwCLiming Chen Chair of Greater China,World Economic ForumTowards Nature Positive:Corporate and Financial Institution Practices in China December 2023Towards Nature Positive:Corporate and Financial Institution Practic
16、es in China4Executive summary The business case for protecting nature is clear:55%of global GDP is moderately or highly dependent on ecosystem services,and companies with high or moderate dependence on nature account for more than half the market value of companies listed on Chinas stock exchanges.4
17、 The corporate focus on biodiversity only recently became mainstream during the run-up to COP15 and the adoption of the Kunming-Montreal Global Biodiversity Framework(GBF)in December 2022.The GBF aims to ensure that large companies and financial institutions monitor,assess and disclose their risks,d
18、ependencies and impacts on biodiversity in order to reduce negative impacts on biodiversity,increase positive impacts and reduce relevant business risks.5The vast majority of companies are still in the early stages of their nature-positive journeys identifying nature-related issues and making high-l
19、evel commitments.More than three-quarters of companies in Chinas Hang Seng Index(HSI)and over half of those in the China Securities Index(CSI)100 mention biodiversity in their environmental,social and governance(ESG)reports.PwC China analysis of 2022 ESG reports showed that over half of HSI companie
20、s and more than one-third of CSI 100 companies have made some sort of commitment towards mitigating biodiversity risks or impacts.This report highlights disclosure of biodiversity risks and biodiversity-related commitments by early-moving corporates and financial institutions in China.Quantification
21、 of impacts on nature(both negative and positive)is still in its early stages due to the complexity and variety of ecosystems and supply chains and the lack of widely accepted metrics and methodologies.These metrics and methodologies have begun to emerge in 2023 from multistakeholder initiatives suc
22、h as the Task Force on Nature-related Financial Disclosures(TNFD)and the Science Based Targets Network(SBTN).An essential change in mindset for companies is to go beyond stand-alone actions for nature and to integrate nature into their overall business strategies.Commitments to no net loss(NNL)of bi
23、odiversity,deforestation-free supply chains,regenerative agriculture and plastic recycling are examples of corporate biodiversity-related goals that can be integrated into business models.Financial institutions face biodiversity-related risks via the companies in their loan and investment portfolios
24、.They can mitigate these by integrating nature and biodiversity into their lending and investment decisions.Regulators can support this by enhancing biodiversity-related corporate ESG reporting requirements.Such actions will help shift funding away from activities with negative impacts and towards m
25、ore benign activities.Natural capital and ecosystem services are public goods on which society,the economy and businesses depend,so the public sector will always need to play a leading role in protecting and restoring biodiversity with funding,policy,regulations,standards,research,multistakeholder i
26、nitiatives,etc.The mainstreaming of nature and biodiversity into policy-making helps create an enabling environment for nature-positive economic growth and can create business opportunities in areas such as ecotourism,agriculture,aquaculture,ecosystem restoration,construction and the circular econom
27、y.Valuing natures benefits to people with metrics,such as gross ecosystem product(GEP),is essential to mainstreaming.Biodiversity-inclusive spatial planning and ecological compensation mechanisms help protect natural capital and ecosystem services.The government needs to set market rules that impose
28、 costs for externalized negative impacts while creating a level playing field with minimum requirements for sustainability.A multistakeholder approach to biodiversity protection and restoration is a key to success.Nature-and biodiversity actions must be economically sustainable and deliver measurabl
29、e benefits for local communities.Towards Nature Positive:Corporate and Financial Institution Practices in China5List of China examples from corporates,financial institutions,local governments and non-governmental organizations(NGOs)TABLE 1OrganizationCases and case studiesPageTowngasAssessment and r
30、eporting of impacts and dependencies using TNFDs LEAP framework14State GridAssessment and reporting of impacts and dependencies using Natural Capital Protocol15China MolybdenumNo net loss of biodiversity commitment17COFCO InternationalDeforestation-free supply chain targets for soybeans and palm oil
31、19McDonalds ChinaRegenerative agriculture plan to work with key suppliers and farmers21Swire Coca-ColaRecycling targets for packaging and building a food-grade plastic recycling plant22LenovoProduct recycling targets and end-of-life management approach 22ICBC Standard BankBanned activity list for fi
32、nancing and multi-stage client ESG due diligence process25Equator PrinciplesNo net loss of biodiversity requirement for project financing26Bank of China Exclusion policy,and client acceptance/exit policy for environmental risksCNY 1.99 billion biodiversity-themed green bond27Industrial BankCNY 70 mi
33、llion wetland carbon sink loan28China Pacific Insurance Co.(CPIC)Wildlife public liability insurance in Yunnan28Shenzhen municipal governmentThe first complete gross ecosystem product(GEP)accounts in China30Chengdu XingchengEcosystem restoration and valuation in the construction of Huancheng Ecologi
34、cal Park32Changshu municipal governmentMultistakeholder urban wetland restoration approach33Select the case study to discover moreTowards Nature Positive:Corporate and Financial Institution Practices in China6Business depends on nature and biodiversity1Companies with high or moderate dependence on n
35、ature account for over half the value of Chinas stock exchanges.The business case for corporate action on nature is clear.Of the worlds GDP,55%$58 trillion is now moderately or highly dependent on nature.6 Economic dependence on nature carries over to financial markets and shareholders.Companies wit
36、h high or moderate dependence on nature account for half the market value of companies listed on the worlds top 19 stock exchanges nearly$45 trillion(see Appendix 1 for all 19 exchanges).The Taiwan Stock Exchange,the Shanghai Stock Exchange and the Shenzhen Stock Exchange were the three most exposed
37、 of the 19 stock exchanges analysed.This was largely driven by their exposure to agriculture,construction,and the food,beverages and tobacco industries.The Stock Exchange of Hong Kong was the 16th most exposed out of 19 exchanges analysed.All industries rely,to some extent,on ecosystem services in b
38、oth their own operations and their supply chains.Figure 2 shows various industries level of value chain dependence on ecosystem services.In agriculture,forestry,fishery and aquaculture,food,beverages and tobacco,and construction,100%of the economic value generated by direct operations and more than
39、50%of the value generated by their supply chains are highly dependent on nature.7Towards Nature Positive:Corporate and Financial Institution Practices in China7Market capitalization of listed companies with high,moderate or low dependence on natureFIGURE 1 73%of market capitalization consists of com
40、panies with high or moderate nature dependence,particularly in the following industries:AgricultureChemical and materials EnergyElectronicsDigital communicationsTaiwan Stock Exchange(TWSE)44%29%27%23242529303343536403937 382627284132565%of market capitalization consists of companies with
41、high or moderate nature dependence,particularly in the following industries:ConstructionFood,beverages and tobaccoEnergySupply chain and transportRetail consumer goods and lifestyleShanghai Stock Exchange(SHSE)37%28%35%AutomotiveMining and metalsAgriculture23242529303343536403937 38262728
42、4132561%of market capitalization consists of companies with high or moderate nature dependence,particularly in the following industries:Food,beverages and tobaccoAgricultureEnergyDigital communicationsElectronicsShenzhen Stock Exchange(SZSE)23242529303343536403937 382627284132530%31%39%52
43、%of market capitalization consists of companies with high or moderate nature dependence,particularly in the following industries:EnergyReal estateDigital communicationsSupply chain and transportAutomotiveStock Exchange of Hong Kong(SEHK)Food,beverages and tobaccoRetail,consumer goods and lifestyle23
44、242529303343536403937 382627284132513%39%48%Dependence on nature:HighModerateLowSource:EXIOBASE;ENCORE database;S&P Capital iQ;PwC UK analysisIndustries global value chain dependence on nature by gross value added(GVA)FIGURE 2Towards Nature Positive:Corporate and Financial Institution Pra
45、ctices in China9 Healthcare deliveryInformation technologyInsurance and assetBanking and capital marketsElectronicsMining and metalsAviation,travel and tourismRetail,consumer goodsReal estateDigital communicationsAutomotiveSupply chain and transportChemicals and materialsEnergyWater utilitiesConstru
46、ctionFood,beverages and tobaccoFishery and aquacultureForestryAgriculture008090100%Supply chainDependence on nature:HighModerateLow00708090100%Direct operations00708090100%Direct customers50The Kunming-Montreal Global Biodiversity Framework8BOX 1In December 2022,at t
47、he 15th Conference of the Parties to the UN Convention on Biological Diversity(COP15),with China as the presiding country,the Kunming-Montreal Global Biodiversity Framework(GBF)was adopted.The GBFs mission is to halt and reverse biodiversity loss by 2030.For business,the GBFs target 15 aims to ensur
48、e that by 2030,large and transnational companies and financial institutions monitor,assess and transparently disclose their risks,dependencies and impacts on biodiversity through their operations,supply chains and portfolios in order to reduce negative impacts on biodiversity,increase positive impac
49、ts and reduce relevant business risks.For the public sector,the GBFs target 14 aims to ensure the full integration of biodiversity and its multiple values into policies,regulations,planning and development processes,etc.across all levels of government and across all sectors.Other targets for 2030 in
50、clude:Biodiversity-inclusive spatial planning and management over all land and sea areas Placing 30%of the Earths marine and terrestrial areas under ecosystem protection and 30%of the planets degraded ecosystems under restoration Reducing pollution,including a 50%reduction in nutrient pollution and
51、pesticide risk,and working towards the elimination of plastic pollution Reforming$500 billion in annual subsidies that are harmful for nature and mobilizing$200 billion in additional annual funding for biodiversity from public and private sources.Towards Nature Positive:Corporate and Financial Insti
52、tution Practices in China10The corporate journey from understanding to nature-positive action2Companies need to integrate nature into their overall business strategies.In line with the GBFs target 15,companies will need to embark on their nature-positive journeys to understand their impacts and depe
53、ndencies on nature,reduce the associated risks and move towards positive impacts on biodiversity.9“Nature positive”is an apex goal for nature and biodiversity,similar to the goal of“net zero”for addressing climate change.10 The nature-positive journey for business2.1A nature-positive future means th
54、at we,as a global society,halt and reverse the loss of nature measured from its current status,reducing future negative impacts alongside restoring and renewing nature,to put both living and non-living nature measurably on the path to recovery.International Union for Conservation of Nature(IUCN)The
55、integration of nature and biodiversity into decision-making and strategy is at the core of becoming a nature-positive business.Until now,companies have often taken conservation or restoration actions that are not directly related to their own business model.Progressing towards nature-positive,howeve
56、r,requires that companies develop a thorough understanding of their relevant impacts and dependencies,then design,commit to and execute a nature strategy with time-bound targets that is integrated into their overall business strategy,operations and supply chains.In addition to halting and reversing
57、biodiversity loss,these actions can bring other benefits to companies,such as stronger risk management and resilience,innovative and more efficient use of resources,enhanced reputation among consumers,and compliance with emerging environmental regulations and environmental,social and governance(ESG)
58、reporting requirements.Disclosing a clear strategy for managing nature-related risks and opportunities can encourage confidence among institutional investors,who are increasingly interested in companies environmental sustainability.Mitigating impacts on nature and biodiversity can expand access to f
59、inancing,as a growing number of lenders factor biodiversity risks into their credit decisions.Corporate actions on nature are relevant to GBF target 19,as they mobilize private-sector funding to address drivers of biodiversity loss.Table 2 provides a useful description of the stages on the corporate
60、 journey towards nature-positive.For more details on how to take nature-positive corporate action,please refer to Appendix 2 for useful frameworks and guidance.Towards Nature Positive:Corporate and Financial Institution Practices in China11Stages of the nature-positive journeyTABLE 2StartingDevelopi
61、ngAdvancedLeadingThe company identifies nature-related issues and presents stand-alone actions for nature.The company assesses its impacts and dependencies and sets a high-level ambition or targets for nature.The company integrates nature into strategy,sets measurable commitments for nature and impl
62、ements strategic actions along priority parts of the value chain.The company assesses impacts and dependencies for all potentially relevant realms,redefines industry business models and drives full value chain mobilization and beyond.Source:World Business Council for Sustainable Development(WBCSD),R
63、oadmaps to Nature Positive,2023.The vast majority of companies in China appear to be in the“starting”stage or beginning their work in the“developing”stage,as indicated by the analyses in sections 2.3 and 2.4.This is not very different from the global corporate landscape,where companies in the“advanc
64、ed”and“leading”stages still appear to be a small minority.11,12 In the coming years,companies in China(and globally)will need to add skills and resources for assessing and disclosing these impacts and managing the associated risks and opportunities.An integrated approach to biodiversity and climate
65、is essentialBOX 2An inspiring number of companies and public sector organisations have taken concrete actions to use nature-based solutions(NBS)to capture carbon from the atmosphere.It is essential,however,that these projects integrate both biodiversity and climate goals.The IUCN Global Standard for
66、 Nature-based Solutions requires that NBS result in a net gain to biodiversity and ecosystem integrity.13If not carefully thought out,many actions taken to achieve carbon goals can despite good intentions have a negative impact on biodiversity.Tree planting,for example,is often portrayed as an easy
67、answer to the climate crisis.However,poorly planned and executed tree planting could increase CO2 emissions and have long-term deleterious impacts on biodiversity,landscapes and livelihoods.14 Where the main goal is timber production and/or carbon sequestration,fast-growing monocultures are widely u
68、sed.It has,however,been demonstrated that in the long term,restored native forests maximize biomass and capture far more carbon while conserving biodiversity.15 At the same time,afforestation of areas that have been historically occupied by a non-forested biome such as grassland,savanna,non-forested
69、 wetland or peatland can deplete both biodiversity and soil organic carbon.16 This report highlights current early-stage examples of corporate disclosure of biodiversity risks,dependencies and impacts,as well as biodiversity-related commitments that are aligned with the GBF targets by corporates and
70、 financial institutions.There is still a lack of widely agreed metrics and methodologies for quantifying impacts both positive and negative on nature.This is expected to change soon,however,with emerging convergence on reporting and methodologies,as well as growing levels of knowledge and expertise.
71、Frameworks and guidance are being released to assist companies in addressing these challenges.The Taskforce for Nature-related Financial Disclosures(TNFD)and the Science Based Targets Network(SBTN),for example,have introduced guidance in 2023 on metrics and methodology,as well as other topics,e.g.th
72、e assessment of dependencies and impacts,strategy development and target setting,disclosure,risk and opportunity management,etc.At the same time,IUCN is developing a methodology to measure and track contributions“towards a nature-positive future”.17 These organizations are working with each other,wi
73、th hundreds of companies around the world,with nature-focused non-governmental organizations(NGOs),and with leading subject matter experts.Please refer to Appendix 2 for links to TNFD,SBTN and other useful frameworks and guidance.Quantification is a key challenge2.2Towards Nature Positive:Corporate
74、and Financial Institution Practices in China12Towards a new biodiversity reporting standard?BOX 3In June 2023,the International Sustainability Standards Board(ISSB)issued its first sustainability standards,IFRS S1 and IFRS S2.These aim to provide a comprehensive global baseline of sustainability-rel
75、ated disclosures.IFRS S1 provides a set of disclosure requirements that enable companies to communicate their sustainability-related risks and opportunities.IFRS S2 sets out specific climate-related disclosures.Both IFRS S1 and IFRS S2 have fully incorporated the recommendations of the Taskforce on
76、Climate-related Financial Disclosures(TCFD),(e.g.its four-pillar governance,strategy,risk management,and metrics and targets framework),marking the culmination of the TCFDs work.The ISSB will take over the ongoing work of the TCFD from 2024.18 In response to interest from investors,the ISSB has prop
77、osed a large research project on biodiversity,ecosystems and ecosystem services(BEES)that could lay the groundwork for potential future standard-setting.19 According to the ISSB,“Disclosure on BEES would enhance transparency around corporate activities that affect BEES,which could be useful informat
78、ion for investors in assessing financial value creation.”20“BEES has emerged as a priority topic because 1)it underpins all human activities,including business,and 2)research and work on BEES and the related risks and opportunities for investors are evolving at a significant pace.”21 The ISSBs resea
79、rch will include considering the work of the TNFD,22 which has also incorporated the four-pillar TCFD framework to be consistent with the ISSB standards.23The UN Convention on Biological Diversity(CBD)Secretariat has called for an ISSB standard on BEES by 2024.It would support the implementation of
80、the GBFs target 15 and would enable the alignment of policy-making and financial and corporate investment activities with the goals of the GBF as set out in target 14.24 The potential loss of ecosystem services on which companies depend creates physical risks to their business.At the same time,compa
81、nies whose activities negatively impact nature face transition risks due to litigation,reputational damage,increasingly strict environmental regulations,etc.These physical and transition risks can impact revenues,increase costs or impair assets.Shareholders and financial institutions are increasingl
82、y focused on the implications of these nature-related risks for their investments and loan portfolios.Central banks and other regulators recognize that dependencies and impacts on nature threaten the stability of their economies and financial systems and want more transparency around these risks.Inc
83、reased disclosure will incentivize the shifting of financial flows away from harmful activities and towards those with more benign impacts on nature.Analysis of ESG reports shows that many of Chinas leading companies are already acknowledging biodiversity risks and making relevant high-level commitm
84、ents to manage them.Assessing and disclosing business impacts and dependencies on nature and biodiversity2.3Towards Nature Positive:Corporate and Financial Institution Practices in China13Hang Seng Index(HSI)and China Securities Index(CSI)100 companies that mention“climate change”and“biodiversity”an
85、d make commitments on greenhouse gas emissions and biodiversity in their 2022 ESG reports25 FIGURE 337%54%55%76%66%93%80%100%CSI 100HSIMention“climate change”Include GHG emission reduction commitmentMention“biodiversity”Include biodiversity commitmentNote:HSI constituents as of 15 June 2023 and CSI
86、100 constituents as of 23 May 2023Source:PwC China Nearly 80%of companies in the Hang Seng Index26(HSI)and more than half of the companies in the China Securities Index(CSI)10027 mention biodiversity in their annual ESG reports,compared to 100%and 80%,respectively,that mention climate change.More th
87、an one-half and one-third,respectively,of HSI and CSI 100 companies make some sort of commitment to mitigate biodiversity risks or impacts,compared to 93%and 66%that have made commitments to reduce greenhouse gas(GHG)emissions.The following are examples of companies that have already taken action to
88、 assess and disclose their impacts and dependencies on nature.Towngas used the TNFDs“locate,evaluate,assess and prepare”(LEAP)approach to assess impacts and dependencies on nature for 117 of its facilities across China.It screened for high biodiversity value locations by mapping for proximity to pro
89、tected areas(PAs),key biodiversity areas(KBAs)and threatened species(TS).29 Impacts and dependencies for the relevant business activities were identified using the Exploring Natural Capital Opportunities,Risks and Exposure(ENCORE)tool.30Based on these findings,the company assessed and mapped risk dr
90、ivers,(including six physical and four transition risk drivers),risk transmission channels(e.g.insufficient water supply),and potential business impacts for each of the business activities(e.g.operational disruption.)31The results will inform decision-making on the companys future strategy and opera
91、tions.In November 2022,Towngas disclosed the findings in an integrated document32 that covered both climate-and nature-related risks and opportunities.Towngas is now one of the first companies in China piloting the full TNFD nature-related risk management and disclosure framework.33 CASE 1Towngas is
92、sues Hong Kongs first TNFD-aligned report on nature-related dependencies and impacts28Towards Nature Positive:Corporate and Financial Institution Practices in China14During 2020 and 2021,State Grid used the Natural Capital Protocol assessment methodology to analyse its impacts and dependencies on na
93、ture in grid planning,construction,maintenance and other business activities,and conducted a qualitative,quantitative and monetary valuation of relevant indicators.The company identified relevant risks and opportunities,providing a reference for strategy development as well as management and operati
94、onal decisions.Based on this analysis,State Grid published the Biodiversity Management and Value Creation of State Grid Corporation series,which consists of a comprehensive volume,as well as volumes on Jiangsu,Shandong,Zhejiang and Xinjiang.CASE 2State Grid uses the Natural Capital Protocol to asses
95、s its impacts and dependencies on nature34Public commitments to take action on nature and the drivers of biodiversity loss enhance credibility and accountability,and help companies to align their nature-related planning,actions and targets.This section covers four different examples of commitments t
96、hat are integral to core business models and relevant to the GBFs 2030 mission and targets.No net loss(NNL)and net positive impact(NPI)NNL and NPI targets for biodiversity imply that negative impacts caused by a company(or project)are either balanced or outweighed by activities that generate biodive
97、rsity gains.These targets are commonly associated with the mitigation hierarchy,where action is taken first to avoid,then to minimize,restore and where necessary offset negative impacts.35 Such targets are relevant to the GBF 2030 mission of halting and reversing biodiversity loss.NNL/NPI targets ar
98、e most often made on a project-and location-specific basis for activities in the energy,infrastructure,extractive and construction industries.The use of the word“net”acknowledges that some biodiversity losses at a given site are inevitable,and that these may not be perfectly balanced in the time,spa
99、ce or type of biodiversity impacted due to the limitations of information available on relevant species and ecosystems.36 An NPI goal can be considered a precautionary means of ensuring an NNL outcome for biodiversity.37 Often,the two terms are used together in biodiversity goals.For example,the IFC
100、s Performance Standard 6 requires no net loss of biodiversity in natural habitats and net biodiversity gains in critical habitats.38 Examples of corporate biodiversity-related commitments in China2.4NNL,NPI and the mitigation hierarchyFIGURE 4BiodiversityvaluesNet positive impact(NPI)Residual impact
101、No net loss(NNL)BiodiversityimpactBiodiversityimpactAvoidanceAvoidanceReductionReductionRestoration+RestorationOffsetOffsetAdditionalconservationactionsRestorationReductionReductionAvoidanceAvoidanceAvoidanceBiodiversityimpactBiodiversityimpactSource:IUCN,No Net Loss and Net Positive Impact Approach
102、es for Biodiversity,2015.Towards Nature Positive:Corporate and Financial Institution Practices in China15The importance of credible,robust and independent pre-project baseline and post-project biodiversity evaluations cannot be overstated.This also applies to projects that specifically aim to conser
103、ve or restore biodiversity,such as those mentioned in Case 9 and section 4.4.Going forward,this will be a critical area for capacity building.A small but growing number of companies in other industries are going beyond specific projects and applying the NPI approach to impacts across their full valu
104、e chains(see Box 4).This can be especially powerful for companies that have large upstream land and natural resource footprints.NPI commitments signal the way forward for corporate approaches to nature and biodiversity because they require the assessment of overall impacts,as well as corporate actio
105、ns(that are geographically relevant and proportionate in scale)to reduce negative impacts and increase positive impacts.In other words,companies must integrate nature and biodiversity into their overall corporate strategies and redefine their business models to address their impacts.Among HSI and CS
106、I 100 companies with NNL or NPI goals,there are companies in the energy,mining,infrastructure,shipping and pharmaceutical sectors.As a percentage of index constituents,the combined share of HSI and CSI 100 constituents with NNL or NPI goals is roughly in line with that of the S&P Asia LargeMidCap in
107、dex(see Figure 5).Percentage of companies in selected indices with NNL and NPI goals39FIGURE 50%5%10%15%20%S&P Europe 350S&P Asia LargeMidCapS&P 500CSI 100HSINet positive impactNo net lossSources:HSI and CSI 100 figures based on PwC China analysis of 2022 ESG reports;For other indices:Rueedi,Joerg a
108、nd Esther Whieldon,“Biodiversity is still a blind spot for most companies around the world”,S&P Global,15 December 2022.Towards Nature Positive:Corporate and Financial Institution Practices in China16China Molybdenums NNL of biodiversity vision guides its strategy development,indicator framework and
109、 data monitoring.The company highlights the importance of environmental impact and baseline biodiversity assessments,as well as the application of the mitigation hierarchy.“In order to establish a unified vision,goals and plans for biodiversity protection at the group level and build a clearer perfo
110、rmance planning and monitoring system,we formulated our biodiversity vision in 2021,which commits to ensure no net loss of biodiversity from operations by continuously improving management and implementing mitigation measures.Guided by this vision,in the future we will gradually develop key implemen
111、tation strategies and establish a framework of core indicators to improve data aggregation,monitoring and review.”“The environmental impact assessment process is key to ensuring that the effects of our activities on biological diversity are appropriately recognized and mitigated.These programs are f
112、ounded on baseline assessments of biological resources in the areas of planned operations,which are described in terms of species composition and species of concern,as well as supporting habitats at local,regional,and if appropriate,global levels.Baseline descriptions allow accurate identification o
113、f impacts anticipated from greenfield or brownfield project development.Accurate impact definition in turn drives application of the mitigation hierarchy in typical stages,such as avoid,reduce,mitigate and offset and the subsequent development of biodiversity management plans if needed.”CASE 3China
114、Molybdenums NNL of biodiversity vision40Towards Nature Positive:Corporate and Financial Institution Practices in China17Applying the mitigation hierarchy and NPI goal to the corporate value chainBOX 4NNL and NPI approaches,in which negative impacts on biodiversity are outweighed by actions aligned w
115、ith the mitigation hierarchy(illustrated in Figure 4),have long been associated with site-specific projects in sectors such as energy,construction or mining.However,stakeholders now expect companies to take responsibility for the nature-and biodiversity-related impacts of their full value chains.Set
116、ting an overall NPI goal(including the application of the mitigation hierarchy)can be a powerful point of focus for developing a nature strategy that addresses the full impacts of a companys direct operations and supply chain.SBTN has created a mitigation hierarchy-based action framework for compani
117、es.The actions in Figure 6 are examples that illustrate how the mitigation hierarchy concept could potentially be applied to achieve goals and targets in a corporate NPI nature strategy.Examples of potential corporate actions in a full value chain NPI nature strategyFIGURE 6Adapted from:“Step 4”,SBT
118、N,n.d.;SBTN,Science-based Targets for Nature Initial Guidance for Business,September 2020;SBTN,Step 3:Measure,Set,Disclose Land(Version 0.3),May 2023;SBTN,Technical Guidance:Step 3 Freshwater:Measure,Set,Disclose,May 2023.Avoid:Prevent impact from happening in the first place;eliminate the impact en
119、tirely Achieve zero conversion of natural lands in direct operations and supply chains Avoid water pollution,effluents and runoff,including acidification Avoid water withdrawals from sensitive ecosystems and limited resources(including groundwater)Avoid persistent organic pollutants and use of hazar
120、dous chemicals Avoid unsustainable or illegally harvested seafood and other marine resources from supply chains Reduce:Minimize impacts,but without necessarily eliminating them Reduce GHG emissions Improve efficiency to reduce water use;install or upgrade wastewater treatment facilities to reduce po
121、llutants Encourage and invest in circular economy for relevant matarials Reduce agricultural land footprint in direct operations and supply chains;reduce nutrient runoff and soil erosion through sustainable agricultural practices Promote,implement and improve forestry and agricultural certification
122、schemes(e.g.FSC,RTRS,RSPO,organic cotton standards)Regenerate:Take actions designed within existing land and sea uses to increase the biophysical function and/or ecological productivity of an ecosystem or its components Shift food production towards enhancing working lands(e.g.organic agriculture,re
123、generative agriculture,sustainable rate of harvest,etc.)Regenerate existing plantations with sustainable practices(e.g.agroforests,enrichment strips,perennial crops and trees,etc.)Improve ecological productivity in working lands in line with landscape-scale objectives and stakeholder needs through s
124、ilvopasture,agroforestry,border plantings,etc.Support regenerative ocean farmingRestore:Initiate or accelerate the recovery of an ecosystem with respect to its health,integrity and sustainability,with a focus on permanent changes in state Support the ecological restoration of deforested and degraded
125、 land Restore freshwater systems by restoring environmental flows,reconnecting habitats(including rivers)or restoring physical habitat Improve water quality and quantity in watersheds or along riparian/wetland buffers through restoration of native vegetation Support forest landscape restoration with
126、 reforestation,rehabilitation,remediation of past conversion,etc.Restore the landscape with pollinator habitat and native vegetationTransform:Take actions contributing to system-wide change,notably to alter the drivers of biodiversity loss Champion nature-positive policies and initiativesTowards Nat
127、ure Positive:Corporate and Financial Institution Practices in China18Mitigating deforestation and conversion risk in supply chainsBeef,soy,palm oil and logging for paper and wood are responsible for about 70%of deforestation globally.41 China is the worlds largest importer of beef,soy and wood pulp,
128、and the second largest importer of palm oil.42 These commodities can merit enhanced levels of due diligence,traceability and/or certification to enable companies to mitigate the risk that their raw materials were produced on land that was deforested after the locally relevant cut-off date.About 50%o
129、f HSI companies mention commitments to reduce or limit deforestation risk through measures such as site selection,environmental impact management,credit policies,or procurement policies that avoid deforestation-risk products or favour sustainability-certified agricultural and forestry commodities.Ex
130、amples of such certified commodities include Roundtable on Sustainable Palm Oil(RSPO)-certified palm oil or Forest Stewardship Council(FSC)-certified paper.43The Consumer Goods Forums(CGF)Forest Positive Coalition of Action has published a responsible sourcing strategy called the Forest Positive App
131、roach.The first requirement is for businesses to make“a public commitment to be deforestation-and conversion-free across the entire commodity business,including a public time-bound action plan with clear milestones”.44For more information on how to address these risks,the Accountability Framework In
132、itiative provides a useful roadmap for achieving ethical supply chains that protect forests,natural ecosystems and human rights.Global Canopys Forest 500 identifies the worlds 350 companies with the greatest influence on and exposure to tropical deforestation,and ranks them based on the strength and
133、 implementation of their commitments on deforestation and human rights.Of the 37 Mainland China and Hong Kong companies included in the 2022 Forest 500 ranking,one ranked in the top quartile,one in the second quartile,eight in the third quartile and 27 in the bottom quartile.45 For its approach on d
134、eforestation and human rights in its supply chains,COFCO was ranked the highest among the Mainland China and Hong Kong corporates covered by Global Canopys 2022 Forest 500 rankings and among the top 25%globally.47 COFCO Internationals soybean non-deforestation and non-conversion targets include:By 2
135、023,achieve full traceability to farm for directly-sourced Brazil soybeans.Disclose progress in mapping indirect suppliers to the farm in the Soft Commodities Forums*(SCF)61 focus municipalities,audited by an external party.By 2025,halt deforestation from direct and indirect soy supply in the Amazon
136、,Cerrado and Chaco in line with the Agricultural Sector Roadmap to 1.5oC commitment.By 2030 achieve a deforestation-and conversion-free soy supply chain in sensitive regions of Latin America.COFCO Internationals palm oil 2022-2023 non-deforestation and non-conversion targets include:Achieve and main
137、tain full traceability to mill level for global palm oil sourcing(up from 70%in 2022).All direct suppliers with whom COFCO International has a regular business relationship have no deforestation,no peat and no exploitation(NPDE)policies and implementation plans by 2023.Adopt and implement the NDPE I
138、mplementation Reporting Framework.*The SCF is hosted by the World Business Council for Sustainable Development(WBCSD),and aims to eliminate soy-driven deforestation and native vegetation conversion.COFCO International joined the SCF in 2019.The other members are Archer Daniels Midland,Bunge,Cargill,
139、Louis Dreyfus and Viterra.CASE STUDY 1COFCO Internationals deforestation-and conversion-free targets46Towards Nature Positive:Corporate and Financial Institution Practices in China19Supporting farmers transition to regenerative agricultureThe GBFs target 7 includes the goals of reducing nutrient pol
140、lution and pesticide risks by half.Transitioning from conventional to regenerative agriculture can help achieve these goals.Regenerative agriculture,broadly speaking,is focused on soil health and conservation.It entails minimizing tillage and chemical inputs(i.e.fertilizers and pesticides),using cro
141、p rotation and intercropping,protecting soil(with cover crops or mulching)and,where applicable,integrating livestock operations and rotational grazing.These practices can enhance fertility,water filtration and retention,crop resilience and biodiversity-related ecosystem services(e.g.pollination).Chi
142、nas government is working to create an enabling environment for many practices associated with regenerative agriculture.It aims to improve ecological subsidies and compensation for the protection of agricultural land,including the promotion of conservation tillage and crop rotation.48 Efforts to red
143、uce chemical inputs have resulted in the intensity of chemical fertilizer and pesticide use falling since 2015 as shown in Figure 7 and Figure 8.Mainland China chemical fertilizer use(kg/ha)FIGURE 705003003504000628200020022004200620082010201220
144、020NitrogenPhosphatePotashSource:Food and Agriculture Organization of the United Nations(FAO)Towards Nature Positive:Corporate and Financial Institution Practices in China20Mainland China pesticide use(kg/ha)FIGURE 81,01,31,61,92,22,54020022004200620082001
145、620182020Source:Food and Agriculture Organization of the United Nations(FAO)In March 2023,McDonalds China launched its regenerative agriculture plan to work with nine key suppliers that provide over two-thirds of its procured ingredients.The programme will focus on nature,soil,water,livestock and fa
146、rmers.During 2023-2028,it will promote regenerative agriculture ideas while ensuring alignment with local conditions.49 By 2028,10 test farms will be established,2,000 core farmers will be empowered by the plan and 20,000 farmers in their communities will begin their regenerative agriculture journey
147、.50 The plan will support progress on McDonalds global 2050 carbon-neutral goal and the development of green and low-carbon agriculture.51 CASE 4McDonalds China launches its regenerative agriculture planReducing plastic waste and pollution with circular economy modelsChina is taking several multista
148、keholder approaches to reduce plastic waste and pollution,aligned with the GBFs target 7 goal of working towards the elimination of plastic pollution.The national plan to control plastic pollution aims to cut the production and use of plastics,develop alternatives and reduce plastic going to landfil
149、ls or leaking to the environment.52 It will ban many single-use plastics by 2025 and establish a management system for production,circulation,use,recycling and disposal.53 Chinas national extended producer responsibility(EPR)plan prioritizes electrical appliances,electronic products,automobiles,batt
150、eries and packing materials.54 By 2025,the regulatory structure should be in place,and Chinas average waste recycling rate should reach 50%.55Cities are addressing the challenge of collecting and sorting plastic waste from consumer goods and household waste.Hong Kong,for example,is installing revers
151、e vending machines that pay people for depositing plastic bottles,56 to be funded by a beverage supplier EPR scheme.57 The following are examples of companies using a circular economy approach to reduce plastic and other waste.Towards Nature Positive:Corporate and Financial Institution Practices in
152、China21Swire Coca-Cola has set the following targets:By 2025:Primary packaging will be 100%recyclable(2022:achieved 99%).58 By 2030:Primary packaging will contain 50%recycled material(2022:achieved 11%).59 By 2030:Collect and recycle one bottle or can for every bottle or can sold(2022:achieved 11%in
153、 Hong Kong and 100%in Taiwan,China for PET bottles.Achieved 99%in Mainland China and 49%in the US for cans).60Swire Coca-Colas New Life Plastics(NLP)joint venture built Hong Kongs first food-grade plastics recycling facility in 2022,with capacity to handle 900 tonnes/month of PET and HDPE bottles.NL
154、P reached processing rates of 400 tonnes/month in 2022.61,62Swire Coca-Colas actions to reduce post-consumer waste from beverage packaging include:63 Reduce single-use packaging by cutting amount and weight.Promote eco-design and reduce use of packaging materials including bottle lightweighting,usin
155、g transparent plastic to increase recycling values,and increase use of recycled content.Recycle packaging materials into the highest possible value end-products.Collaborate with public,private and non-profit organizations to promote the transition to a circular model.CASE STUDY 2Swire Coca-Colas rec
156、ycling plan for plastic and other packagingLenovo uses post-consumer recycled content in laptops,desktops,workstations,monitors and accessories.The company aims to eliminate plastic from packaging,and its corrugated packaging must contain at least 70%post-consumer fibre.Lenovos product end-of-life m
157、anagement programme increases the beneficial reuse and recycling of products and parts and reduces the number of electronic products going to landfills.In 2022,the company expanded the use of closed-loop(CL)post-consumer recycled content plastics(PCC)to 298 products,up from 248 products the previous
158、 year.By 2026,100%of PC products will contain PCC materials.In 2022,the companys use of plastics containing recycled content was approximately 7 million kg(gross),with a net CL PCC of approximately 4.1 million kg.Lenovo introduced ocean-bound plastics(OBP)content in speaker enclosures,dummy smart ca
159、rds and dummy SIM covers.For these,the company used 10,800 kg(gross)of plastics containing OBP,with a net OBP of approximately 540 kg in 2022.Since 2005,the cumulative use of recycled plastics in products exceeds 130 million kg(gross),containing post-industrial recycled content(PIC)plastics,PCC and/
160、or CL PCC,with net PCC of approximately 54 million kg and net CL PCC of more than 18 million kg.By 2026,the company aims to use recycled plastics for 90%of plastic packaging for PC products and 60%for smartphone packaging.The company launched packaging cushions containing 30%OBP and 70%recycled plas
161、tic,and it uses OBP in bags.These applications will use an estimated 130-140 tonnes of OBP this year.The company aims to eliminate plastic materials from product packaging and has achieved this for the ThinkPad X1 and Z series.Lenovo aims to recycle/reuse a cumulative 800 million pounds(362,874 tonn
162、es)of end-of-life products between during 2005-2025.CASE STUDY 3Lenovos product recycling and end-of-life management approach64Towards Nature Positive:Corporate and Financial Institution Practices in China22Financial institutions nature and biodiversity risks and opportunities3Financial institutions
163、 need to incorporate nature and biodiversity risks and opportunities into their lending and investment decisions.In line with the GBFs target 15,financial institutions(FIs)will need to better assess and disclose nature-related impacts and dependencies in their investment and loan portfolios and bett
164、er manage the associated risks and opportunities.In December 2022,the Peoples Bank of China(PBOC)Research Institute of Finance and Banking published its Survey Report on Financial Support to Biodiversity.It found that financial development and biodiversity are mutually dependent.Biodiversity loss br
165、ings physical and transition risks to the financial industry,while an optimal allocation of resources through financial means can contribute to biodiversity conservation.The biodiversity financing gap remains sizeable,and transition risks are surfacing.The report made several recommendations,includi
166、ng:Require FIs to better evaluate and manage biodiversity-related risks.Promote more efficient conversion of ecological benefits into economic benefits.Encourage new financing models for biodiversity conservation.Biodiversity loss brings risks to FIs via physical and transition risks to companies in
167、 their investment and lending portfolios.Physical risks originate with those companies dependence on ecosystem services(as illustrated by the analysis in section 1).Transition risks originate from portfolio companies adverse impacts on nature and societys efforts to reduce those impacts(e.g.through
168、litigation,regulation,etc.),as illustrated by the example in Box 5.By better managing biodiversity risks,FIs will play an essential role in shifting funding away from activities with negative impacts on nature and towards those with more benign impacts.Regulators can support this by enhancing biodiv
169、ersity-related ESG reporting requirements.Managing financial institutions biodiversity-related risks3.1Financial institutions are not well prepared to effectively manage biodiversity risks.Without a deep understanding of these risks,banks have not fully incorporated them into their risk management p
170、rocess.Surveys show that some banks havent taken environmental factors into their credit models,allowing businesses to obtain credit despite past or ongoing environmental penalties.Peoples Bank of China Research Institute of Finance and Banking,Survey Report on Financial Support to BiodiversityTowar
171、ds Nature Positive:Corporate and Financial Institution Practices in China23Biodiversity-related transition risks:the Yunnan green peacock caseBOX 5Chinas growing focus on biodiversity has resulted in more stringent conservation policies.The“Yunnan green peacock case”was Chinas first preventive publi
172、c interest action to protect endangered wildlife.65 The case was chosen as one of the 10 most important decisions of 2021 by the Supreme Peoples Court,Chinas top court.66,67 In this case,a hydropower project on the Gasajiang River in Yunnan was halted because it threatened the habitats of two endang
173、ered species.This came after it had already incurred billions of yuan in investment and despite the fact that the project had followed the proper procedures.68 The Yunnan green peacock case demonstrates the potential transition risk for FIs that fail to fully assess biodiversity-related risks and in
174、corporate them into lending and investment decisions.According to the PBOC Research Institute of Finance and Banking,“This case shows that large-scale projects come with a long project period and high environmental risks,and present substantial uncertainty to financial institutions as they cannot pr
175、event or control the risks at the late stage of projects with sole dependence on environmental impact assessment(EIA)and related permits.”69 The following are examples of approaches that FIs can take to better manage their biodiversity-related risks.ICBC Standard Bank,a London-headquartered subsidia
176、ry of the Industrial and Commercial Bank of China(ICBC)with a large commodities and emerging market focus,has issued a list of banned activities that entail high environmental risks,including climate-,deforestation-and biodiversity-related risks.The bank will not directly facilitate the banned activ
177、ities with any current or prospective clients.In 2022,the bank adopted a multi-stage client due diligence process.First,clients are evaluated against a set of criteria,such as sector,country and ownership,to determine potential ESG touchpoints that require further investigation.If the pre-assessment
178、 flags any ESG risks of concern,an in-depth ESG risk evaluation is conducted that measures clients against up to fifty questions.Analysis showed that about 10%of existing clients would be subject to such in-depth evaluation.CASE 5ICBC Standard Banks list of banned activities70ICBC Standard Banks ban
179、ned listTABLE 4SectorActivityMiningMountain top removalEnergyArctic circle drilling and explorationTar sands drilling and explorationFisheriesCommercial drift net/bottom trawling fishingAgri-commoditiesDeforestation and/or burning tropical rainforest to produce agri-commoditiesProduction or trading
180、in palm oilExclusion lists and targeted due diligence processesFIs can promulgate an exclusion list to stop financing activities that have excessively high negative impacts on biodiversity and where no transition pathways are possible.The FI would refuse to finance or invest in these activities.A mo
181、re restrictive approach is to refuse to provide any services at all to companies that engage in these activities.For existing clients,an engagement-focused approach is typically preferred.FIs can require clients to have a publicly announced time-bound transition plan to phase out the excluded activi
182、ties and can support those clients in their transition.For this approach to be effective,the FI needs to clearly state that it will exit clients that fail to make progress in halting the excluded activity.FIs can implement ESG screening procedures that require enhanced due diligence on transactions
183、and clients involving high-risk commodities,business activities,project types and locations.Towards Nature Positive:Corporate and Financial Institution Practices in China24Project financing requirements for NNL of biodiversityBy making project financing contingent on delivering NNL of biodiversity,F
184、Is can mitigate their financed impacts on biodiversity and reduce the nature-and biodiversity-related transition risks in their investment and lending portfolios,such as those illustrated by the Gasajiang River hydropower project(see Box 5).NNL requirements for project financing are aligned with the
185、 PBOC recommendation that financial institutions better manage environmental risks by making the mitigation of biodiversity impacts(through the application of the mitigation hierarchy)a component of project screening and due diligence while excluding projects that involve ecologically important area
186、s or irreversible biodiversity impacts.71 Achieving Chinas double-carbon goals(peak carbon emissions by 2030 and carbon neutrality by 2060)will require massive amounts of project financing for low-carbon energy and transport infrastructure,electric vehicle and battery manufacturing,and raw material
187、extraction projects(for copper,cobalt,nickel,lithium,etc.).If Chinas largest banks implemented biodiversity NNL policies,they could play a significant role in mitigating negative impacts on biodiversity both in China and in Belt and Road Initiative(BRI)projects while at the same time reducing their
188、own biodiversity-related transition risks related to litigation,stranded assets and reputational damage.When providing project financing,Equator Principles Financial Institutions require those projects to comply with the IFC Performance Standards(IFC PS).72 This includes a requirement to achieve NNL
189、 of biodiversity in natural habitats and a net biodiversity gain in critical habitats through the application of the mitigation hierarchy.73 Industrial Bank reports that it has applied the Equator Principles to a total of 1,346 projects as of 2022,involving a total investment of over CNY 500 billion
190、.74 Chinas Green Investment Principles,a platform to enhance green financing across the Belt and Road Initiative(BRI),has set a target to increase the number of financial institutions committing to the Equator Principles.75CLP,one of Hong Kongs leading energy companies,has implemented its own NNL po
191、licy for new projects.76 In 2020,70%of the companys financing for new projects came from Equator Principles Financial Institutions.77Equator Principles Financial Institutions with headquarters in Mainland China or Hong Kong:78 Bank of Chongqing(2021*)Fujian Haixia Bank(2021*)Bank of Guizhou(2020*)In
192、dustrial Bank(2008*)Bank of Huzhou(2019*)Mian Yang City Commercial Bank(2020*)Bank of Jiangsu(2017*)Weihai City Commercial Bank(2021*)Chongqing Rural Commercial Bank(2020*)CASE 6Equator Principles Financial Institutions*Date of adoptionTowards Nature Positive:Corporate and Financial Institution Prac
193、tices in China25Mitigating FIs deforestation and conversion risksFrom 2018 through 2022,FIs from Mainland China and Hong Kong are estimated to have extended more than$16.6 billion in financing to companies in forest-risk commodity supply chains in South-East Asia,Latin America,and Central and West A
194、frica.79 Estimated 2018-2022 financing from Mainland China and Hong Kong FIs to companies in tropical deforestation-risk commodity supply chainsFIGURE 9RubberPulp and paperPalm oilSoyTimberBeef02468South East AsiaLatin AmericaCentral and West Africa$BillionsSource:Forests and Finance Database FIs ca
195、n mitigate biodiversity risks related to agricultural expansion in their lending or investment portfolios by setting requirements for investee companies or companies seeking financial services.Examples include:Companies and their suppliers must make a time-bound commitment to achieve zero deforestat
196、ion and conversion of natural habitats in their beef and soy supply chains and a time-bound commitment to have full traceability of beef and soy channels.Palm oil producers must have a time-bound plan for full RSPO certification of their operations.Companies processing or trading palm oil must have
197、a time-bound plan to trade and process only RSPO-certified oil.Companies and their suppliers must not drain or degrade wetlands or peatlands,use fire for land-clearing activities or degrade high conservation value(HCV)and high carbon stock(HCS)areas.Global Canopys Forest 500 identifies the worlds 15
198、0 FIs with the greatest influence on and exposure to tropical deforestation and ranks them based on the strength and implementation of their commitments on deforestation and human rights.Of the six Chinese banks covered in the 2022 Forest 500 ranking,two ranked in the top 50%and four ranked in the b
199、ottom 30%.80Towards Nature Positive:Corporate and Financial Institution Practices in China26Bank of Chinas exclusion list includes deforestation-and conversion-related activities,as well as a clear statement that it will exit clients that fail to make relevant rectifications.“For the enterprises/pro
200、jects that are found to go against national policies and regulatory requirements,fail to meet environmental protection standards,and have significant environmental and climate risks;destroy critical habitats,important biodiversity areas and national nature reserves;illegally log,fish and poach wildl
201、ife;blindly expand oil palm plantations leading to deforestation;and illegally occupy and destroy forest lands,the Bank requires not providing credit or investment support for these corporate customers or their projects;as to the existing business relations,it shall urge related customers to make re
202、ctifications and take effective measures to mitigate risks;and if rectifications are impossible,it shall exit from the business relations with such customers as soon as possible.”CASE 7Bank of Chinas approach to environmental risk control and mitigation81There is a growing number of mechanisms for p
203、rivate sector funding of investments that support the protection or restoration of biodiversity.New financing vehicles will continue to be developed based on evolving investor and borrower demands,new policy incentives,regulatory guidance to banks,and new nature-focused applications of existing and
204、emerging financial instruments.Capturing these opportunities will be aligned with the GBFs target 19 on mobilizing additional funding for biodiversity.The following are examples of financial products and structures that can channel funding to activities aligned with reducing negative impacts and inc
205、reasing positive impacts on nature.Nature-and biodiversity-related opportunities for private sector financing3.2Green bonds Green bonds are any type of bond instrument where the proceeds will be exclusively applied to finance(or refinance)projects that have clear environmental benefits and are align
206、ed with the core components of the Green Bond Principles.82 During the years 2014-2022,just over$2 trillion worth of green bonds were issued globally.83 These account for less than 2%of the approximately$120 trillion global bond market84 indicating potential for significant growth.To date,77%of glob
207、al green bond proceeds have been used in the energy,buildings and transport sectors.85 The GBF and the growing focus on nature could drive increased issuance for biodiversity-relevant green project categories,such as pollution prevention,environmentally-sustainable management of living natural resou
208、rces and land use,terrestrial and aquatic biodiversity conservation,wastewater management,circular-economy projects,etc.86Bank of China issued the worlds first biodiversity-themed green bond from a financial institution87 in September 2021.There were six eligible green projects to be funded,includin
209、g terrestrial and aquatic biodiversity conservation projects and forest reserve projects in various parts of China.Their approximate total value was CNY 1.99 billion(about$280 million).88CASE 8Bank of China issues CNY 1.99 billion biodiversity-themed green bondTowards Nature Positive:Corporate and F
210、inancial Institution Practices in China27Carbon markets Carbon markets can bolster financing for nature and biodiversity via nature-based climate solutions.Globally,the voluntary carbon credit(or offset)market is estimated at$2 billion,with the potential to reach$1 trillion by 2037.89 China is prepa
211、ring to reboot its market for domestic voluntary carbon credits,the China Certified Emission Reductions(CCER)scheme,with increased emphasis on forestry projects.90 Chinas national emissions trading system(ETS),launched in 2021,is driving new demand by allowing companies to cover up to 5%of their com
212、pliance obligation with CCERs.91 This growing demand for voluntary carbon credits is enabling new funding mechanisms for biodiversity in China.For example,carbon sink loans provide lending that is secured by the future market value of carbon credits generated by forest or wetland restoration project
213、s.Approvals for carbon credit projects and financing should be subject to biodiversity-related requirements such as the IFC Performance Standards92 or the IUCN Global Standard for Nature-based Solutions93 to ensure that carbon-focused nature-based solutions result in a net gain to biodiversity and e
214、cosystem integrity.94The Xiazhu Lake Wetland,located in Deqing County of Zhejiang Province is a national wetland park and tourist attraction,with more than 800 species of plants and animals.In November 2022,Industrial Bank granted it a project loan of CNY 70 million,specifically for the wetlands eco
215、logical protection and improvement.Income from the wetlands carbon sink is one of the sources of repayment for the project,opening a green financial channel for wetland ecological governance and wetland biodiversity protection.CASE 9Industrial Bank issues CNY 70 million wetland carbon sink loan95Ins
216、urance to support biodiversity conservationInsuring against damage caused by wildlife,with streamlined insurance compensation,can ease potential conflicts between humans and wild animals.Yunnan province introduced public liability insurance for personal or property damage caused by wildlife.Province
217、-wide coverage was achieved in 2014.Since 2011,policies jointly underwritten by CPIC Property Insurance and PICC P&C have paid CNY 140 million in claims.In May 2022,Qinghai province released the Pilot Program of Insurance Compensation for Personal and Property Damage Caused by Terrestrial Wildlife i
218、n Qinghai Province.This province-wide,government-funded liability insurance for wildlife damage made it the leading province in terms of geographic coverage and scope of compensation.96In 2009 the Yunnan Provincial Forestry Department and CPICs Yunnan branch developed the first wildlife public liabi
219、lity insurance,based on intensive research and a series of field surveys.This innovation introduced the concept of insurance to the ecological compensation mechanism and transformed government compensation into commercial insurance compensation as a government function.It has been recognized for its
220、 contribution to poverty alleviation in Yunnan.CASE 10CPICs Yunnan branch develops first wildlife public liability insurance97Towards Nature Positive:Corporate and Financial Institution Practices in China28Enabling environment:public sector mainstreaming of nature and biodiversity4Dependent on ecosy
221、stem services,China has made significant efforts to fund biodiversity protection and integrate nature into policy-making.“Clear waters and lush hills are worth a mountain of gold and a mountain of silver”,98 is an important government recognition that stewardship of natural capital and ecosystem ser
222、vices is integral to and necessary for achieving economic growth that is measured in monetary terms.According to the PBOC Research Institute of Finance and Banking,a major challenge to biodiversity financing is that“biodiversity-related projects are mostly public interest or quasi-public interest un
223、dertakings with long life cycles,limited investment returns and little short-term economic benefits.”99“Underdeveloped supporting policies security against risks,compensation mechanisms,tax relief and interest subsidies have also,to some extent,restricted financial support for biodiversity projects.
224、”100 These factors make public-sector funding essential when market mechanisms fail to attract sufficient private-sector investment in conservation and restoration.The following are examples of policy,regulatory and public-sector financial measures that support the enabling environment for Chinas tr
225、ansition to a nature-positive economy.Each of these helps protect the public goods of natural capital and ecosystem services on which society,the economy and business depend.Each will have important implications for local economies and business environments.The GBFs target 1 calls for all areas to b
226、e under integrated biodiversity-inclusive spatial planning and/or effective management processes addressing land-and sea-use change.101 China is the first major economy to implement a functional zoning system that designates land areas at a national level for urban development,agriculture and variou
227、s ecological functions including 63 key ecological function zones(KEFZs)that cover about half of the countrys total land area102 and extend to more than 800 counties.The KEFZs aim to sustain five ecosystem services:water retention,biodiversity protection,soil retention,sandstorm prevention and flood
228、 mitigation.103 Chinas ecological protection redlines entail spatial zoning by provinces at a more refined scale104 to protect important ecosystem services and ecologically valuable or sensitive areas.105 These cover 30%of Chinas land area and more than 150,000 km2 of marine environment.106Biodivers
229、ity-inclusive spatial planning4.1Towards Nature Positive:Corporate and Financial Institution Practices in China29A fundamental step in enabling the nature-positive transition is the qualitive and quantitative assessment of natural capital and the ecosystem services that it provides to society.Estima
230、ting their monetary value enables consideration of nature in various decision-making contexts,such as evaluation of government policy and performance,land-use and infrastructure planning,financial compensation for ecosystem services suppliers,and assessing business dependencies and impacts on nature
231、.107,108Aligned with the GBFs target 14,China is mainstreaming the measurement and use of gross ecosystem product(GEP),i.e.the total economic value of ecosystem services produced within a given geography.China is the first country to adopt GEP in economic planning.109 It aims to have an initial meth
232、odology in place by 2025 and a complete mechanism for realizing GEP by 2035.110 Currently,17 provincial and 50 city governments are implementing GEP pilots.111Assessing the value of ecosystem services4.2In 2021,Shenzhen published the first complete GEP accounting system in China,112 and reported a G
233、EP of CNY 130.38 billion($20.36 billion)consisting of CNY 2.35 billion worth of provisioning services,CNY 69.95 billion worth of regulating services(including CNY 48.8 billion worth of climate regulating services)and CNY 58.07 billion worth of nonmaterial services(including CNY 41.9 billion of touri
234、sm and leisure services.)113 Going forward,the city aims to grow both GDP and GEP.114 CASE 11Shenzhen publishes first complete GEP accounts in ChinaThe GBFs targets 18 and 19 aim to increase biodiversity funding by repurposing harmful subsidies and by increasing funding from public and private sourc
235、es.China has invested trillions of yuan in ecological compensation programmes,mostly since 1998,for soil and water conservation in the Yellow River and Yangtze River basins,forest conservation,desertification mitigation,agricultural productivity,115 and wetland restoration and protection.116 Chinas
236、ecological compensation mechanism,generally speaking,attempts to reduce conflicts between development and conservation by having beneficiaries(e.g.downstream urban residents)pay suppliers(e.g.upstream rural residents)to protect ecosystems for specific services(e.g.supplying clean water).117 The cent
237、ral government transferred about CNY 413 billion($58 billion),for example,to local governments during the years to compensate for restrictions on development in KEFZs and to incentivize improved management.119In September 2021,the government laid out goals for improving ecological compe
238、nsation mechanisms to address forests,grasslands,wetlands,marine environments,rivers and croplands.120 The most business-relevant goals include:Increasing the role of market mechanisms and diversified compensation approaches to help regions that conduct ecological protection obtain benefits and enco
239、urage the whole society to participate.121 Improving ecological subsidies and compensation for the protection of agricultural land,including the promotion of conservation tillage and crop rotation.122Public funding for nature and biodiversity protection4.3Towards Nature Positive:Corporate and Financ
240、ial Institution Practices in China30Governments have a role to play in setting market rules that impose extra costs for negative impacts,reward positive impacts and create a level playing field by setting minimum sustainability requirements that compel all participants to internalize the cost of add
241、ressing their impacts on nature.Market mechanisms can help spur innovation and drive efficiency by allowing companies to find the most cost-effective means of addressing impacts on nature.Chinas carbon markets are an emerging example of environmental market mechanisms,including both the national all
242、owance-based ETS and voluntary CCERs.EPR schemes can require every company that puts plastics(and other materials)on the market to pay for their collection and recycling.Mandating minimum levels of recycled content can create the necessary level of demand to make recycling economically sustainable.R
243、estricting water pollution from agriculture and aquaculture can level the playing field for sustainable practices and incentivize more efficient conservation measures and innovative chemical-free approaches to yield enhancement and intensification.Central bank relending programmes can provide fundin
244、g to commercial banks for low-interest relending to fund activities that reduce negative impacts or increase positive impacts on nature.Creating an enabling market environment for nature-positive business and investment decisions4.4Towards Nature Positive:Corporate and Financial Institution Practice
245、s in China31The following case studies are examples of public sector investments in protecting and restoring natural capital and the biodiversity on which it depends.They illustrate the potential for government policies to create ecological and social benefits as well as business opportunities in ac
246、tivities such as ecotourism,agriculture,aquaculture,ecosystem restoration and construction.Examples of public-private collaborative actions to protect and restore nature and biodiversity 4.5Chengdu Xingcheng is building the 133 km2 Huancheng Ecological Park,123 which encircles the city of Chengdu.Wi
247、th completion expected in 2027,more than 38 km2 of land and 12 km2 of urban water ecosystems are being restored,124 including several wetlands.100,000 mu(66.7 km2)has been allocated for agriculture,125 including 6,372 mu(4.2 km2)for agricultural demonstration projects and research.Experts estimate t
248、hat the parks annual GEP,after completion,will be CNY 26.9 billion.126 Several government bodies and academic institutions are building a system,including sensors and procedures,to continue the assessment and monitoring of the parks GEP,including its land remediation and ecological restoration.Both
249、a tailored methodology and a GEP assessment report have been published.127Eight of the parks wetland projects have been listed on the Sichuan United Environmental Exchange(SUEE)in the provinces first emissions reduction transaction for ecologic protection.128 The resulting Chengdu Certified Emission
250、 Reduction(CDCER)carbon credits secured a CNY 10 million credit line with a 1.8%annual interest rate,provided by Industrial Bank to Chengdu Xingcheng129 demonstrating how innovative financial structures can be used to convert ecological benefits into economic benefits.Chengdu Xingcheng Investment Gr
251、oup also raised$300 million for the project by issuing a five-year green bond in Hong Kong with an interest rate of 2.375%.130With 621 km of multi-level greenways,78 landscape bridges and other facilities for culture and recreation,131 the park is expected to improve quality of life for Chengdus res
252、idents and attract tourists.For the surrounding areas,it is expected to attract new talent and business investment and benefit property prices.It is estimated that,by 2050,the park will drive about CNY 1 trillion of value creation related to consumption and livelihoods.132Revenue from recreation and
253、 cultural activities is projected to more than cover the parks operating costs.133 There are 337,000 m2 of characteristic parks that will be completed in 2023 and opened for leasing,with expected revenues of over CNY 20 billion during the period of the project.Revenues from the parks 177,000 m2 fore
254、st esplanade are expected to exceed CNY 10 billion.Other sources of revenue will include parking lots,advertising,leasing of land,etc.134 Other highlights include:The number of bird species inhabiting Chengdu increased from 384 to 511135 240,000 trees planted136 1,900 tonnes/year of CO2 absorption c
255、apacity137 2,000 tonnes/year of dust prevented from polluting the air138 120 million visits logged as of February 2023139CASE STUDY 4Ecosystem restoration and valuation in the construction of Chengdu Huancheng Ecological ParkTowards Nature Positive:Corporate and Financial Institution Practices in Ch
256、ina32The Changshu Wetland Innovative Model of Urban Development and Wetland Conservation was awarded the Paulson Nature Stewardship Prize for Sustainability.140 Changshu,located at the southern end of Suzhou municipality,is characterized by its high population density,141 agriculture and aquaculture
257、.It is estimated to have approximately 2,000 small and micro wetlands.142 Many of Changshus wetland areas have already been urbanized or converted to agriculture,and so efforts cannot be limited to restoring original wild habitats and ecosystems.Instead,a“three-factor integrated development model”in
258、corporates ecological protection,agricultural production and the lives and livelihoods of wetland village residents143 to ensure a deeply integrated approach to local community development and wetland protection.144 These restoration efforts have not only improved the state of local ecosystems but h
259、ave also fostered economic growth from activities such as tourism,agriculture and aquaculture.145 Changshu considers the importance of wetlands in spatial planning and city management.146 The Changshu Wetland Administration Committee has established a consultative committee to include people from di
260、fferent stakeholder groups,such as scholars and community representatives,in wetland decision-making and management.147 Wetland restoration has been integrated into a sustainable tourism plan,providing recreation opportunities for local residents and visitors.148 Nature-based solutions have been use
261、d to address various issues;for example,ecological percolation islands were used to address sediment pollution caused by aquaculture in the Nanhu wetland.149,150Between 2010 and 2022 the Suzhou municipal government invested CNY 12 billion in ecological compensation funds,providing compensation for e
262、cological protection of 1.149 million mu(766 km2)of rice fields,315,000 mu(210 km2)of ecological public welfare forests,172 wetland villages,50 water source villages,and 102,600 mu(68.4 km2)of scenic spots.151Highlights of the restoration include:The value of ecosystem services provided by Changshus
263、 wetlands in 2021 was estimated at nearly CNY 100 billion.152 The wetland protection rate increased from 5.5%(2011)to 65.3%(2023).153 Water quality in key wetlands improved from grade V to grades II/III.154 Municipal water quality segments achieving grades I-III increased from 26%(2015)to 78%(2021).
264、Bird species increased from 136 to 319.155 Revenue from mitten crabs and aquatic crops reached CNY 2.5 billion.156 Income from wetland crops such as paddy rice,wild rice,water shield,water chestnuts,fox nuts,lotus,arrowhead and water cress grew to CNY 960 million.157 Annual tourism,driven mainly by
265、wetland parks,reached 20 million visits,with revenue of CNY 30 billion.158 Other contributions to the local economy include increased property values and attracting new industries.159CASE STUDY 5Changshu multistakeholder urban wetlands restoration approachTowards Nature Positive:Corporate and Financ
266、ial Institution Practices in China33ConclusionWith 55%of global GDP and more than half the value of companies listed on Chinas stock exchanges moderately or highly dependent on nature,business leaders need to put nature at the same level as climate change in their corporate governance and risk manag
267、ement.The integration of nature and biodiversity into decision-making and strategy is at the core of becoming a nature-positive business.Companies need to assess their baseline dependencies and impacts on nature including those of their supply chains.Based on that understanding,they can identify ris
268、ks and opportunities and adjust their business model to address those.Public,time-bound commitments to address specific biodiversity-related risks and impacts can build credibility,enhance accountability and serve as high-level focus points for plans and actions.For more details on how to take natur
269、e-positive corporate action,please refer to Appendix 2 for useful frameworks and guidance.This report highlights disclosure of biodiversity risks and biodiversity-related commitments by corporates and financial institutions.There has been a lack of widely agreed metrics and methodologies for compani
270、es to quantify impacts and dependencies on nature,but 2023 has seen the emergence of new frameworks,metrics and methodologies from organisations such as TNFD and SBTN.Corporates and financial institutions will also require new skill sets and resources to address their biodiversity-related risks and
271、opportunities and to fulfil emerging disclosure expectations and requirements.Financial institutions will need to better evaluate and manage biodiversity-related risks to protect the value of their asset portfolios.Regulators can support this by enhancing biodiversity-related corporate ESG reporting
272、 requirements.With improved understanding,there will also be opportunities to offer new financing structures and products.Nature and ecosystem services are public goods upon which businesses,the economy and society depend,so the public sector must play a leading role in protecting and restoring biod
273、iversity.Creating a market environment that supports business activities that are both ecologically and economically sustainable is essential.To succeed,Chinas biodiversity conservation and restoration efforts will need to bring benefits to local communities and create market conditions for economic
274、ally sustainable nature-positive business models that convert ecological benefits to economic benefits.A cooperative and multistakeholder approach will be necessary to preserve nature and ecosystem services,public goods that provide essential benefits to all of society.Success will depend on action
275、and cooperation by all levels of government and by all actors of society.Towards Nature Positive:Corporate and Financial Institution Practices in China34AppendicesTowards Nature Positive:Corporate and Financial Institution Practices in China35Exposure of stock exchanges to nature-related riskA1Marke
276、t capitalization of listed companies with high,moderate or low dependence on natureFIGURE 10 Total across all 19 stock exchangesSaudi Stock Exchange(Tadwul)Australian Securities Exchange(ASX)Johannesburg Securities Exchange(JSE)Stock Exchange of Hong Kong(SEHK)Toronto Stock Exchange(TSX)New York Sto
277、ck Exchange(NYSE)Nasdaq Global Market Composite(NASDAQ:NQGM)London Stock Exchange(LSE)Tokyo Stock Exchange(TSE)National Stock Exchange of India(NSE)Korea Exchange(KRX)OMX Nordic ExchangeDeutsche Boerse AG(DB)EuronextBolsa de Valores de So Pablo(BOVESPA)SIX Swiss ExchangeShenzhen Stock Exchange(SZSE)
278、Shanghai Stock Exchange(SHSE)Taiwan Stock Exchange(TWSE)00708090100%Dependence on nature:HighModerateLow44%29%27%37%28%35%30%31%39%29%14%57%29%23%48%27%34%39%26%45%28%23%27%49%21%50%29%19%18%62%18%46%36%17%30%53%16%41%43%16%24%60%14%28%58%13%39%48%9%37%54%8%33%59%4%14%82%19%31%49%Note:Her
279、e,nature dependence measures the degree to which the economic value generated by business activity is exposed to the risk of ecosystem disruption.High dependence means that economic value comes from business activities that could fail financially as a result of particular ecosystem disruptions.Moder
280、ate dependence means that economic value comes from business activities that are likely to experience a material reduction in financial returns because of particular ecosystem disruptions.Low dependence means that economic value comes from business activities that are likely to experience limited ma
281、terial financial effects of ecosystem disruptions.Source:EXIOBASE;ENCORE database;S&P Capital iQ;PwC UKTowards Nature Positive:Corporate and Financial Institution Practices in China36Frameworks and guidance for businesses to manage nature-related risks and opportunitiesA2 The Taskforce on Nature-rel
282、ated Financial Disclosures(TNFD)framework offers guidance for companies and financial institutions to assess their dependencies and impacts on nature,develop a strategy and organization to manage the relevant risks and opportunities and report on all of these.The Science-based Targets Network(SBTN)p
283、rovides a five-step process for setting,implementing and tracking progress on science-based targets for nature.The Natural Capital Protocol provides a framework for companies to identify,measure and value their direct and indirect impacts and dependencies on natural capital.Business for Natures ACT-
284、D framework provides an overview of high-level business actions on nature.The Accountability Framework Initiative(AFI)uses consensus-based guidelines for companies in the agriculture and forestry sectors to provide a roadmap for achieving ethical supply chains that protect forests,natural ecosystems
285、 and human rights.Potential for business opportunities and jobs from Chinas nature-positive transitionA3The World Economic Forums Seizing Business Opportunities in Chinas Transition Towards a Nature-positive Economy lays out a roadmap for Chinese companies to seize the business opportunities offered
286、 by 15 priority transitions in three key socioeconomic systems that together can pave the way to a people-and nature-positive development that will be resilient to future shocks.These transitions are projected to add$1.9 trillion in annual business value and potentially create 88 million jobs in Chi
287、na by 2030.160Towards Nature Positive:Corporate and Financial Institution Practices in China37Wild fisheries management151,262Technology in smallholder farms10304Restoring degraded land7240Sustainable forestry management7545Technology in large-scale farms6135Bivalves protection6473Plant-based dairy5
288、169Technology in wood supply chains4441Urban agriculture4350Preventing food to landfill364Natural climate solutions/forest ecosystem services3240Non-timber forest products3215Bio-innovation352Livestock intensification224Agro-forestry1125Certified sustainable foods017Farm-to-fork models03Total56534,0
289、76Food,land-and ocean-use systemsTABLE 5Opportunity and size by 2030($billion)Jobs(000s)Organic food and beverages998,257Reducing supply chain food loss and waste871,293Diversified vegetables625,154Eco-tourism53283Reducing consumer food waste466,866Sustainable aquaculture423,544Alternative meats2535
290、3Micro-irrigation20226Sustainable inputs191,599Circular models textiles18566Nuts and seeds151,276Towards Nature Positive:Corporate and Financial Institution Practices in China38Infrastructure and the built environmentTABLE 6Opportunity and size by 2030($billion)Jobs(000s)Energy-efficient buildings16
291、112,178Sustainable infrastructure finance919,147Repurposing land from parking86881Green long-range transport522,155Waste management391,035Water&sanitation infrastructure323,245Residential sharing28178Natural systems for water supply21688Office sharing19121Municipal water leakage1636Smart metering132
292、64IR-enabled long-distance transport10137Wastewater reuse9274Energy access7271Building resilience to climate shocks363Urban green roofs2149Total58930,584Note:Annual business opportunity based on estimated savings or projected market sizing in each area.These represent revenue opportunities that are
293、incremental to business-as-usual scenarios.Where available,the range is estimated based on analysis of multiple sources.Rounded to the nearest$1 billion.Source:World Economic Forum,Seizing Business Opportunities in Chinas Transition Towards a Nature-positive Economy,2022.Energy and extractivesTABLE
294、7Opportunity and size by 2030($billion)Jobs(000s)Circular economy models2758,545Renewables expansion1577,867Resource recovery118322 End-use steel efficiency87933 Water efficiency in mining34878 Additive manufacturing19558 Mine rehabilitation161,619 Energy and mining supply chain technology141,443 Su
295、stainable substances in extraction1059 Redesign of dams5466Shared infrastructure4387 Total73923,077ContributorsProductionWorld Economic Forum Susan HuSpecialist,Nature Action AgendaYuan ZhangChina Specialist,Tropical Forest AllianceChunquan ZhuHead,China Nature InitiativesPwC ChinaAmy CaiManaging Pa
296、rtner,SustainabilityCallum DouglasSenior Advisor,Sustainability Brian MartererSenior Manager,Climate and SustainabilityNi QingSustainability Markets LeaderCrystal Zhang Partner,SustainabilityBianca Gay-FulconisDesigner,1-Pact EditionMartha HowlettEditor,Studio MikoTowards Nature Positive:Corporate a
297、nd Financial Institution Practices in China40Endnotes1.Intergovernmental Platform on Biodiversity and Ecosystem Services(IPBES),The Global Assessment Report on Biodiversity and Ecosystem Services,2019,https:/ nature risks:From understanding to action,2023,https:/ on Biological Diversity,Nations adop
298、t four goals,23 targets for 2030 in landmark UN biodiversity agreement Press release,19 December 2022,https:/prod.drupal.www.infra.cbd.int/sites/default/files/2022-12/221219-CBD-PressRelease-COP15-Final_0.pdf.6.PwC,Managing nature risks:From understanding to action,2023,https:/ on Biological Diversi
299、ty,Nations adopt four goals,23 targets for 2030 in landmark UN biodiversity agreement Press release,19 December 2022,https:/prod.drupal.www.infra.cbd.int/sites/default/files/2022-12/221219-CBD-PressRelease-COP15-Final_0.pdf.9.Ibid.10.Weston,Phoebe and Patrick Greenfield,“What does nature positive me
300、an and can it rally support to stop biodiversity loss?”,The Guardian,13 December 2022,https:/ Benchmarking Alliance,Nature Is a Blindspot for Major Companies Despite Its Importance for Their Operations and People Press release,5 December 2022,https:/www.worldbenchmarkingalliance.org/news/nature-benc
301、hmark-press-release-2022/.12.Rueedi,Joerg and Esther Whieldon,“Biodiversity is still a blind spot for most companies around the world”,S&P Global,15 December 2022,https:/ Union for the Conservation of Nature(IUCN),IUCN Global Standard for Nature-based Solutions,2020,https:/portals.iucn.org/library/s
302、ites/library/files/documents/2020-020-En.pdf.14.DiSacco et al,Ten Golden Rules for Reforestation to Optimize Carbon Sequestration,Biodiversity Recovery and Livelihood Benefits,2021,https:/ an IUCN Nature-positive Approach:A Working Paper Summary Highlights,2022,https:/www.iucn.org/sites/default/file
303、s/2022-10/nature-positive-summary-highlights-oct-2022.pdf.18.“IFRS Foundation welcomes culmination of TCFD work and transfor of TCFD monitoring responsibilities to ISSB from 2024”,IFRS,n.d.,https:/www.ifrs.org/news-and-events/news/2023/07/foundation-welcomes-tcfd-responsibilities-from-2024/.19.IFRS,
304、Request for Information IFRS Sustainability Disclosure Standards Consultation on Agenda Priorities,2023,https:/www.ifrs.org/content/dam/ifrs/project/issb-consultation-on-agenda-priorities/issb-rfi-2023-1.pdf.20.“Consultation now open:The ISSB Seeks Feedback on Its Priorities for the Next Two Years”,
305、IFRS,4 May 2023,https:/www.ifrs.org/news-and-events/news/2023/05/issb-seeks-feedback-on-its-priorities-for-the-next-two-years/#1.21.IFRS,Request for Information IFRS Sustainability Disclosure Standards Consultation on Agenda Priorities,2023,https:/www.ifrs.org/content/dam/ifrs/project/issb-consultat
306、ion-on-agenda-priorities/issb-rfi-2023-1.pdf.22.“ISSB Describes the Concept of Sustainability and Its Articulation with Financial Value Creation,and Announces Plants to Advance Work on Natural Ecosystems and Just Transition”,IFRS,14 December 2022,https:/www.ifrs.org/news-and-events/news/2022/12/issb
307、-describes-the-concept-of-sustainability/.23.Taskforce on Nature-related Financial Disclosures(TNFD),The TNFD Nature-related Risk&Opportunity Management and Disclosure Framework Beta v0.1 Release Executive Summary,2022,https:/framework.tnfd.global/wp-content/uploads/2022/06/TNFD-Framework-Executive-
308、Summary-Beta-v0-1-EN.pdf.24.Convention on Biological Diversity,The CBD Secretariat welcomes the release of ISSBs S1 and S2 Standards,2023,https:/www.cbd.int/doc/speech/2023/sp-2023-06-26-ISSB-en.pdf.Towards Nature Positive:Corporate and Financial Institution Practices in China4125.For this chart,bio
309、diversity commitments include forward-looking commitments,goals,targets,policies(including credit,risk management,biodiversity and environmental policies)or ongoing normal procedures that include the word“biodiversity”and involve mitigating or limiting biodiversity risk or impacts.Commitments to red
310、uce GHG emissions include forward-looking commitments,goals,targets,plans,policies or ongoing approaches to reduce scope 1,scope 2 or upstream scope 3 GHG emissions.Historical statements or commitments to merely comply with laws and regulations or generally support national policies or international
311、 agreements(e.g.the GBF)are not counted.ESG reports also include reports labeled as“sustainability”,“sustainable development”,“corporate social responsibility”,“integrated report”etc.For the few companies that had not published 2022 ESG reports,the analysis referred to their 2022 annual report or 20
312、21 ESG report.If“biodiversity”or“climate change”only appeared in the index,they were not counted as mentioned.26.The Hang Seng Index includes 80 companies(as of June 2023)listed on the Hong Kong Stock Exchange and accounts for at least 50%of market capitalization:“Hang Seng Index and Sub-indexes”,Ha
313、ng Seng Indexes,n.d.,https:/.hk/eng/indexes/all-indexes/hsi.27.The China Securities 100 Index includes 100 of the largest A-share companies,panies listed on the Shanghai or Shenzhen stock exchanges.28.“Towngas becomes first HK company to respond to TNFD framework and to evaluate biodiversity risk”,T
314、owngas,11 November 2022,https:/ and Nature-related Directive Guide,2022,https:/ Kong-listed Swire Properties,Towngas and Vitasoy Volunteer to Test Imminent Global Biodiversity Disclosure Framework,South China Morning Post,5 May 2023,https:/ Management and Value Creation of State Grid Corporation of
315、China was published”,China Electric Power Press,11 May 2023,http:/ Grid,State Grid biodiversity management and value creation,2022.35.de Silva,G.C.,et al.,“The evolution of corporate no net loss and net positive impact biodiversity commitments:Understanding appetite and addressing challenges”,Busine
316、ss Strategy and the Environment,vol.28,issue 7,2019,pp.1481-1495,https:/ Net Loss and Net Positive Impact Approaches for Biodiversity Exploring the potential application of these approaches in the commercial agriculture and forestry sectors,2015,https:/portals.iucn.org/library/sites/library/files/do
317、cuments/2015-003.pdf.37.Ibid.38.International Finance Corporation(IFC),Performance Standard 6,2012,https:/www.ifc.org/content/dam/ifc/doc/2010/2012-ifc-performance-standard-6-en.pdf.39.The S&P 500 index is focused on large-cap US equities and includes 500 leading companies covering about 80%of avail
318、able market capitalization:“S&P 500”,S&P,n.d.,https:/ S&P Asia LargeMidCap index includes 682 companies,with 99%of its weighting from companies listed in Japan,Australia,South Korea,Hong Kong and Singapore(as of 3 August 2023):“S&P Asia Pacific LargeMidCap”,S&P,n.d.,https:/ S&P Europe 350 consists o
319、f 350 leading blue-chip companies drawn from 16 developed European markets:“S&P Europe 350”,S&P,n.d.,https:/ Molybdenum,2022 Environmental,Social and Governance Report,2023,https:/ Down Forests:What Are the Drivers of Deforestation?”,Our World in Data,23 February 2021,https:/ourworldindata.org/what-
320、are-drivers-deforestation.42.“World Integrated Trade Solution”,World Bank,n.d.,https:/wits.worldbank.org/.43.PwC China analysis of 2022 ESG reports;Rueedi,Joerg and Esther Whieldon,“Biodiversity is still a blind spot for most companies around the world”,S&P Global,15 December 2022,https:/ Positive A
321、pproach is Key Driver of Industry Progress and Credibility on Deforestation”,Consumer Goods Forum,10 March 2023,https:/ 500”,Global Canopy,n.d.,https:/forest500.org/rankings/companies.46.COFCO International,Sustained sustainability progress:Sustainability Report 2022,2022,https:/ Nature Positive:Cor
322、porate and Financial Institution Practices in China4247.“Forest 500 company rankings”,Global Canopy,n.d.,https:/forest500.org/rankings/companies.48.“The General Office of the Central Committee of the Communist Party of China issued the“Opinions on Deepening the Reform of the Ecological Protection Co
323、mpensation System”,China Central Government,12 Sep 2021,https:/ China launches Regenerative Agriculture Plan with key suppliers”,China Daily,25 March 2023,http:/ unveils 5-year plan to control plastic pollution”,China Daily,15 September 2021,https:/ on Further Strengthening Plastic Pollution Control
324、”,National Development and Reform Commission(NDRC)and Ministry of Ecology and Environment(MEE),16 January 2020,https:/ to Promote Extended Responsibility for Environment”,State Council of the Peoples Republic of China,3 January 2017,https:/ Unveils Extended Producer Responsibility Plan”,China Daily,
325、3 January 2017,http:/ Vending Machine Pilot Scheme”,Hong Kong Government,13 January 2023,https:/www.epd.gov.hk/epd/english/environmentinhk/waste/pro_responsibility/rvm.html.57.“Producer Responsibility Scheme on Plastic Beverage Containers”,Hong Kong Government,June 2022,https:/www.gov.hk/en/resident
326、s/environment/waste/management/prsplastic.htm.58.Swire Pacific,Swire Pacific Sustainable Development Report 2022,2023,https:/ Coca-Cola celebrates grand opening of New Life Plastics”,Swire Coca-Cola,7 December 2023,https:/ Pacific,Swire Pacific Sustainable Development Report 2022,2023,https:/ Group,
327、2022/3 Environmental,Social and Governance Report,2023,https:/ Bank of China Research Institute of Finance and Banking,Survey Report on Financial Support to Biodiversity,2022,http:/ Court Daily(人民法院报),本报评出2021年度人民法院十大案例,1 Jun 2022,http:/rmfyb.chinacourt.org/paper/html/2022-01/06/content_212791.htm.6
328、7.Yin,Cao,“Biodiversity ruling to block dam project first of its kind in China”,China Daily,21 February 2022,https:/ Bank of China Research Institute of Finance and Banking,Survey Report on Financial Support to Biodiversity,2022 http:/ Standard Bank,Environmental,Social and Governance Supplement,202
329、3,https:/ Bank of China Research Institute of Finance and Banking,Survey Report on Financial Support to Biodiversity,2022,http:/ Principles,Equator Principles EP4,2020,https:/equator- Performance Standards on Environmental and Social Sustainability,2012,https:/www.ifc.org/content/dam/ifc/doc/2023/if
330、c-performance-standards-2012-en.pdf.74.Industrial Bank,Sustainability Report(2022),2023,https:/ Nature Positive:Corporate and Financial Institution Practices in China4375.Green Investment Principles,Green Transition and the Belt and Road,2023,https:/ Sustainability Report,2023,https:/ assessment of
331、new investment projects”,CLP,2020,https:/ Principles,n.d.,https:/equator- bond issuance,share issuance,corporate loans and revolving drafts from banks headquartered in Mainland China and Hong Kong:“Data Deep Dive”,Forests and Finance,n.d.,https:/forestsandfinance.org/data/.80.“Forest 500 financial i
332、nstitution rankings”,Global Canopy,n.d.,https:/forest500.org/rankings/financial-institutions.81.Bank of China,2022 Bank of China Limited Corporate Social Responsibility Report,2023,https:/ Capital Market Association,Guidance Handbook,2022,https:/www.icmagroup.org/assets/GreenSocialSustainabilityDb/T
333、he-GBP-Guidance-Handbook-January-2022.pdf.83.“Interactive data platform as of end 2022”,Climate Bonds Initiative,n.d.,https:/ of 30 Sep 2022):“Summary of debt securities outstanding”,Bank of International Settlements,n.d.,https:/stats.bis.org/statx/srs/table/c1.85.“Interactive data platform as of end 2022”,Climate Bonds Initiative,n.d.,https:/ Capital Market Association,Guidance Handbook,2022,http