The importance of nature-based solutions
Nature-based solutions involve working with nature to address societal challenges, providing benefits for human well-being, biodiversity and the climate. They encompass conservation, restoration, and sustainable management of both natural and semi-natural ecosystems such as agriculture, as well as the establishment of new ecosystems in human-modified environments, like urban areas. Nature-based projects are designed to boost biodiversity while delivering a range of ecosystem services, such as carbon sequestration, water purification, and soil fertility. Our new whitepaper ‘Financing the Nature-based Solutions Sector’ describes the potential range of Nature-based Solution projects and how they should be financed in a holistic and sustainable manner.
Jacco Minnaar, Chief Commercial Officer of Triodos Bank: “Investing in nature-based solutions is crucial for restoring our natural environment and mitigating the effects of the climate crisis. At Triodos Bank, we are proud to be at the forefront of this movement, demonstrating that sustainable finance can drive positive environmental and societal impact. Our dedication is evident in our emphasis on five interconnected transition themes: energy, food, resources, societal, and wellbeing. By focusing on these themes, we strive to develop a comprehensive approach to sustainability that benefits the environment while also improving the quality of life for communities around the globe.”
Why we need to strengthen biodiversity
Humans rely on nature for our wellbeing and survival, with biodiversity playing a key role in ensuring ecosystems remain healthy and resilient. These ecosystems provide essential services like pollination of food crops, natural water treatment, and fertile soil. Unfortunately, human activity - deforestation, overexploitation, and pollution – has led to significant biodiversity loss. WWF estimates in the latest Living Planet Report (2024) that we have lost 73% of all wildlife vertebrates, highlighting the dire state of nature.
Triodos Bank's biodiversity targets
Triodos Bank has identified biodiversity as a material impact and its biodiversity targets reflect the responsibility that we feel as a steward of nature, as explained in our white papers ‘Biodiversity, beyond risk and return’ (2022) and ‘Nature in the Balance’ (2024). We have also signed the Finance for Biodiversity Pledge and the UN Principles for Responsible Banking.
Our targets are:
- Create positive impact by playing a leading role in financing nature conservation, restoration and regeneration.
- Provide at least 500 million euro in investments, loans and contributions to the nature-based solutions sector between 2020 and the end of 2030, including nature conservation, restoration, and regeneration projects.
- Begin reporting on positive biodiversity impact of these projects over 2026. This will help track progress and show how the financed projects deliver tangible benefits for biodiversity.
- Avoid negative impact on nature and biodiversity of our activities by applying our strict minimum standards on nature and biodiversity, and further improving our engagement with companies.
- Engage with all listed companies exposed to commodities with high-deforestation risk by 2026 on further limiting deforestation risks
- Engage with all listed chemical companies in our investment portfolio by the end of 2026 on their biodiversity impact.
- Set key performance indicators and start mitigating actions on agriculture and built environment loans by the end of 2026.
- Assess the indirect impact on biodiversity of all financial inclusion funds.
By setting these targets, Triodos Bank aims to play a leading role in financing nature-based solutions and promoting biodiversity conservation and restoration. This commitment aligns with the bank's mission to help create a society that protects and promotes the quality of life of all its members, and that has human dignity at its core. The targets are closely aligned to the targets of the Kunming-Montreal Biodiversity Framework. Particularly, the target of increasing biodiversity funding (target 19 of the framework) and assessing, disclose and reduce Biodiversity-Related Risks and Negative Impacts (target 15 of the framework).