Nature based Solutions for Climate-Related Financial Risks & Opportunities

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1	TAXONOMY GUIDANCE		DRAFT FOR PUBLIC REVIEW
2	Nature-based Solutions for Climate-Related Financial Risks & Opportunities Taxonomy
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4	Context
5	Half of global GDP ($USD58 trillion) is highly dependent on nature, and over 90% of the world's largest companies will be highly exposed to the physical impacts of climate change by the 2050s. Current frameworks like the Task Force on Climate-related Financial Disclosures (TCFD) and the Task Force on Nature-related Financial Disclosures (TNFD) have brought these critical considerations of climate and nature into corporate governance and risk management practices. In parallel, the global push towards adopting and financing nature-based solutions (NbS) is accelerating. By 2050, NbS could sequester at least 10GtCO2 emissions per year, while re/afforestation NbS could generate $USD800B in annual revenues.
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7	Taxonomy
8	With the overarching mission of mobilizing nature finance, Symbaiosys aims to complement current frameworks by connecting the potential impact of investing in nature* to reduce climate-related financial risks—be they physical, transitional, systemic or otherwise. Our taxonomy maps TCFD and TNFD climate-related financial risks and opportunities, to the potential for ecosystem services provided by nature--such as flood protection, and pollination--to reduce, control or mitigate a given risk; or to contribute, improve, or increase a given opportunity. Example 1: To mitigate the impact of hurricanes, investments in nature-based solutions that provide the following ecosystem services can be considered: Flood prevention, Prevention of extreme events, Storm protection, Drainage and Erosion Prevention. Example 2: To reduce insurance liabilities, investments in nature-based solutions that provide the following ecosystem services can be considered: Pest control, Disease control, Biological Control, Climate regulation, Erosion prevention, Storm protection, Flood prevention, Fire Prevention, Prevention of extreme events, Drainage, River discharge, Water regulation, Water purification, and Waste treatment.	* Examples of investable nature conservation actions include: agro-forestry, aquaculture management, aquifer recharge, afforestation, reforestation and revegetation (ARR), cattle management, forest conservation, managed grasslands, peatland restoration, re-wilding, regenerative agriculture, silvopasture, soil carbon farming, sustainable and improved forest management, sustainable agriculture, watershed reforestation, wetland creation and restoration, wild fisheries management, and wildlife conservation.
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10	Explore Further
11	Contribute to refining the Taxonomy by commenting directly on the relevant cells in the document on the next tab, and visit our website to explore further resources and tools: 1. Our searchable Knowledge Library, which can help you identify the ideal nature project type for your priority climate risks and/or opportunities. 2. Our Investment Database for sourcing investable nature projects. 3. Natural capital valuation data on nature based solutions investment projects.
12	https://www.symbaiosys.ai/
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16	This work is licensed under a Creative Commons Attribution 4.0 International License.
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18	Citation: Al Olaimy, Leena, and Chimalakonda, Deepthi. Nature based Solutions for Climate-Related Financial Risks & Opportunities Taxonomy (Draft for Public Review). Symbaiosys, May 2024. https://rb.gy/lt2qwy
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20	The taxonomy is adapted from: TCFD (2022, 2017) Recommendations of the Task Force on Climate-related Financial Disclosures, TNFD (2023) Recommendations of the Taskforce on Nature-related Financial Disclosures, ESVD 2.0 Biomes and Ecosystems classification, FAO Global Ecological Zoning framework (2015), IUCN Global Ecosystem Typology (2020), and The Economics of Ecosystems & Biodiversity (TEEB).
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