2025 the Turning Point for Nature-Positive Finance, says WEF
2025 is anticipated to be a critical year in advancing nature-positive finance globally, so say experts from the World Economic Forum (WEF).
They underscore the growing economic threats from biodiversity loss and the renewed impetus for financial institutions to spearhead sustainable change.
This year builds on the efforts of 2024, including Iberdrola's investments in sustainable research and development, CaixaBank's dynamic green finance plans and DP World's pioneering blue bonds in the Middle East.
In 2025, with mature global frameworks and innovative financial mechanisms becoming mainstream, sectors across the board, especially manufacturing, are poised for substantial transformation.
A new consensus driving action
In December 2022, the Global Biodiversity Framework (GBF) was adopted by 196 countries, committing to reverse biodiversity loss by 2030.
The framework sets ambitious targets, including safeguarding 30% of the Earth's land and oceans, realigning financial flows to support biodiversity and slashing harmful subsidies by up to US$500 billion annually.
For financial institutions, this presents a clear action plan.
The financial sector, initially focused on climate change, is now expanding its scope to address biodiversity.
- 1. There is a growing consensus around global and sectoral pathways that can lead us to nature positivity by 2030
- 2. Having invested in sustainable teams, resources and initiatives since the Paris Agreement in 2015, many institutions are more capable and experienced in sustainability than ever before
- 3. High-quality data and disclosures relating to nature are increasingly available, with AI and data sharing programmes contributing to a more healthy and helpful data ecosystem globally.
More than 194 institutions have already endorsed the Finance for Biodiversity Pledge, aligning their business operations with nature-positive goals.
However, inaction carries high stakes.
Industries such as agriculture, fossil fuels and fishing pose nature-related risks potentially costing the global economy between US$10tn and US$25tn annually.
The urgency to act has never been more pronounced, as highlighted at this year’s WEF’s Annual Meeting in Davos where the natural world was a major agenda item. “Nature-related risks and opportunities are increasingly material to the financial sector, making this the critical moment to accelerate action and safeguard our planet’s biodiversity," explains Aurora Matteini, Specialist in Sustainable Finance at the WEF.
How sustainability frameworks can help the financial sector
Financial institutions are not beginning from scratch in their journey towards sustainability.
Post-Paris Agreement, significant investments have been made in climate-related expertise, governance and risk management.
These resources are now being adapted to tackle nature-related challenges.
Leading banks, including HSBC and Standard Chartered, have implemented policies against deforestation and pledges towards sustainability.
Although aligning financial operations with biodiversity goals may seem daunting, the frameworks developed for climate action provide a robust foundation.
Laura Fisher, Lead for Sector Transitions to Nature Positive at the WEF, recognises this synergy.
“The financial systems that institutions have built for can be expanded to nature with relatively limited climate additional resources, making it an efficient and impactful transition," she says.
Industries such as mining, automotive and ports are starting to integrate nature-positive practices which not only mitigate risks but also unlock new business opportunities.
Innovative tools and data reshaping opportunities
The lack of robust data has been a significant barrier in addressing nature-related challenges.
However, the year 2025 marks a turning point.
Advances in data collection and reporting are granting institutions the tools needed to effectively measure nature-related risks.
The advent of high-quality data sets, corporate disclosures, and regulatory frameworks like the EU's Corporate Sustainability Reporting Directive (CSRD) are setting the stage for standardised insights.
The Taskforce on Nature-related Financial Disclosures (TNFD) plays a crucial role by establishing a consistent framework for managing nature-related risks.
“Improved data availability is eliminating excuses for inaction, enabling financial institutions to take decisive steps towards achieving global biodiversity goals,” Laura explains.
For businesses, especially in manufacturing, these developments are a double-edged sword.
While compliance with new reporting standards may introduce complexity, it also opens up avenues to innovate and lead in sustainable practices.
Improved data availability is eliminating excuses for inaction, enabling financial institutions to take decisive steps towards achieving global biodiversity goals.
Unlocking the economic potential of nature-positive strategies
The economic rationale for embracing nature-positive finance is compelling.
Aligning economic systems with biodiversity goals could unlock annual business opportunities worth US$10.1tn by 2030.
Sectors such as renewable energy, sustainable agriculture and eco-tourism are poised to benefit extensively.
Moreover, the proliferation of nature-focused financial instruments like biodiversity-linked bonds and blended finance models indicates a growing innovation trend.
Private sector funding for nature has ballooned from US$9.4bn in 2019 to more than US$102bn in 2023, epitomising this shift.
For manufacturing industries, adopting nature-positive practices could translate into long-term cost savings and enhanced resilience against supply chain disruptions tied to environmental degradation.
“The financial sector has an unprecedented opportunity to lead in addressing biodiversity loss, unlocking sustainable growth and protecting our shared future,” Aurora explains.
2025 and beyond
With just five years left to meet the GBF's ambitious 2030 targets, 2025 serves as a critical juncture.
The necessary tools, frameworks, and global consensus are in place.
What remains is the global will to act decisively.
For financial institutions, manufacturers, and policymakers, the stakes are evident: Failing to act now risks not only economic losses but also the degradation of natural systems crucial to all industries.
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