F1ES 4520 - Finance and Nature.

Nature is degrading at an unprecedented rate. According to the WWF's annual Living Planet report and the 2020 Global Assessment of the Intergovernmental Policy Platform on Biodiversity and Ecosystem Services, natural species populations have declined by 68% since 1970, and three quarters of the earth's ecosystems on land, waters and ocean are impacted by human activity.
This is not entirely new. Awareness of ecological damage related to human activities led to organizing the Rio Earth Summit in 1992, where the Convention on Biological Diversity (CBD) was agreed to, now adopted by 196 jurisdictions. However, in the past four years, we have seen a new, fast-growing awareness that this nature crisis has important consequences the economy. The Global Biodiversity Framework adopted at COP15 of the CBD in 2022 places specific emphasis on public and private finance. Nature has become the talk of town in sustainable finance circles, whilst initiatives such as the Taskforce on Nature Related Financial Disclosures gain ground, and central banks set to work on the macro-level implications of nature-related risks for the financial system.
This course will consist of twelve 2h sessions to explore how the “Finance x Nature” translates in practice. Starting from basic concepts on sustainable finance, we will discuss the roles and mandates of difference types of financial institutions, what nature-related risks, dependencies and impacts mean for the financial sector; how, concretely, the concepts of “greening finance and financing green” translate for FIs; how financial institutions can measure their nature-related risks and impacts; what synergies can be used between climate, nature, and other sustainability action to generate impact and accelerate the ecological transition.
Designed for non-financial specialists, this course will provide students with an understanding of the policy, regulatory, strategic and operational implications of nature for financial institutions. We will use real-life case studies and homework assignments focused on existing institutions and initiatives to illustrate these implications, concretely. We will also invite relevant external speakers to provide us with hands-on perspectives on latest trends in finance and nature.

Learning Outcomes
1. Understanding sustainable finance and what this means for society and the economy
2. Understanding the concepts of nature-related risks, dependencies, impacts and opportunities for businesses and financial institutions
3. Making sense of sustainable finance for nature and what this means, concretely, for the real economy
4. Awareness of the main standards and initiatives related to finance and nature, and their purpose
5. Understanding of key measurement approaches for nature-related risks and impacts, at operational and entity-wide level.
Professional Skills
1. Integrating nature within policy dialogue and development
2. Developing a vision for how financial institutions can integrate nature within their financing and investment strategies
3. Relating nature conservation and restoration objectives to other objectives and imperatives, including business development, risk management, climate change adaptation and mitigation, as well as other environmental, social and governance aspects.

Camille MACLET

Séminaire

English

Course Workload:
- Attendance: 2 hours a week / 24 hours a semester
- Reading and Preparation for Class: 4 hours a week / 48 hours a semester
- Research and Preparation for Group Work: 4 hours a week / 48 hours a semester
- Research and Writing for Individual Assessments: 30 hours a semester

Students are expected to have an understanding environmental science and the various dimensions of environmental and social impacts of business and industrial activities. Awareness of issues surrounding climate change adaptation and mitigation will also be useful, albeit not a strict prerequisite.

Spring 2024-2025

Assessment:

One keynote presentation on a specific topic related to nature and finance (cf Course outline for envisaged topics) – group work (2 to 3 students) – 40%
One personal project – (written submission): Present a nature strategy for your financial institution, including a benchmark with other existing FIs (sample / archetypes of financial institution to be provided nearer the date) – 50%
Individual participation to class – 10%

Pedagogical Format
Feedback on individual assignments will be provided by email, with possibility given to student to solicit a conversation if need be.
Feedback on group assignments will be provided to group by email (also with possibility of live exchange).