ABN AMRO commits to biodiversity: “Once a species is gone, it’s gone for good”

Over 40 percent of all amphibian species, nearly 33 percent of the ocean’s reefs and corals and more than one-third of all marine mammals are threatened with extinction – that’s roughly 1 million species worldwide. Biodiversity loss can result from soil, water and air pollution through intensive use, causing irreversible destruction of the natural habitat on which animal, plant and human life depends.

“Scientists say we have ten years at the most to reverse this downward spiral,” says Senior Expert Romie Goedicke of IUCN NL, the Dutch branch of the International Union for Conservation of Nature. “It’s the final wake-up call for governments and industry to recognise and appreciate the value of nature and integrate it into their decision-making.”

Economic damage

The Dutch central bank (DNB) and the Netherlands Environmental Assessment Agency (PBL) have backed this urgent appeal, pointing to the catastrophic financial consequences should it go unheeded. Biodiversity loss causes the disappearance of ecosystem services which businesses and companies rely on, such as clean water and the fertilisation of food crops.

ABN AMRO has heard the distress signal, says Global Sustainability Adviser Jan Raes: “Biodiversity has rapidly emerged in recent years as a key theme for the financial sector. That makes a lot of sense, too – we have increasingly been embedding climate considerations in our services over the last few years. Biodiversity is closely linked with the environment. Forest fires set deliberately to obtain monoculture farmland are a classic example in which both the environment and biodiversity are the losers.”

Stakeholder dialogues

In an effort to jump-start this process, ABN AMRO has established a dialogue with stakeholders. In partnership with IUCN NL, three online round-table discussions were organised in December, attracting over forty participants including scientists, representatives from NGOs and clients. The purpose of the talks was to define the issue, listen to the various participants’ views and further shape the bank’s position and policy. “Obviously, the bank doesn’t exist outside the natural world, and we have an opportunity here to make an active contribution to the preservation of biodiversity together with our clients and investors,” says Jan.

It’s not an easy task, though, since biodiversity is an extremely complex issue, Romie says: “Whereas the climate crisis is a global problem, the impact on biodiversity is always local. We can’t be afraid to look beyond a specific species and examine the many causes behind the loss. One thing, at any rate, is clear to everyone: once a species is gone, it’s gone for good.”

The impact of building projects

IUCN NL will be producing summaries of the stakeholder dialogues in the coming weeks and months. These will also include policy recommendations which ABN AMRO will be using to hone its risk policy on financing. The bank will also be looking at areas in which it can make more of a contribution. ABN AMRO is already a signatory to the Finance for Biodiversity Pledge, an initiative which thirty-seven financial institutions from all over the world have now endorsed. These signatories have pledged to ensure that their activities contribute to the conservation and restoration of biodiversity.

“Each and every financial decision has an impact on biodiversity,” says Romie, “so it’s all about being aware of that. This applies not only to the bank – when financing building projects, for example – but also to individual consumers, whether they’re having products shipped to them from every corner of the globe, or tiling over the garden. At the same time, it means that money can also have a positive effect when people and institutions make the right decisions. We’ve seen that stakeholders have lots of great ideas, and I feel certain they can help us enhance and improve ABN AMRO’s policy.”

Thinking differently

What the Paris convention has been for climate change, the upcoming Convention on Biological Diversity held in the Chinese city of Kunming could be for nature. “Nature is our foundation, and without the stability of that foundation, our society, economy and financial sector will falter. It’s now or never, and will require changes from all of us,” says Romie.

Jan says the issue of biodiversity will be embedded in the bank’s very DNA. How does he see that happening in concrete terms? “We’ll be raising awareness of the issue among our clients and looking at what we can do together to make a positive contribution. It’s a discussion which will become as commonplace as the questions we’re now asking about the environment and human rights, for instance. We’re planning to integrate a focus on issues like land use, exotic species and the over-exploitation of raw materials into our service provision. Attention to biodiversity will also make our clients more resilient when confronted with unexpected shocks. It’s precisely this diversity of species which will ensure flexibility, thereby facilitating the continuity of businesses and the economy.”