IBAT and the Sustainable Financial Disclosure Regulation (SFDR)

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Biodiversity Data for Sustainable Finance Disclosure

Northampton, MA –News Direct– IBAT Alliance

Integrated Biodiversity Assessment Tool (IBAT)

January 27, 2022 /3BL Media/ – The integrated biodiversity assessment tool (IBAT) is the world’s most trusted biodiversity tool, developed and maintained by Birdlife International, the International Union for Conservation of Nature, the United Nations Environment Program – World Conservation Monitoring Center and Conservation International . IBAT currently helps 10,000 users at 150 companies worldwide to perform biodiversity assessments and screen for the risk of biodiversity impact in their portfolios or operations

The new European Union regulation on sustainable finance disclosure (SFDR) entered into force in March 2021. The SFDR defines progressive disclosure requirements around biodiversity (among 43 mandatory elements) for asset managers and other financial actors. Over the next two years, companies will need to significantly improve their understanding of biodiversity at both the entity and product level.

The first aspect of biodiversity disclosure focuses on biodiversity and ecosystem conservation practices. This includes disclosing:

1. Share of all investments in recipient companies that do not assess, monitor or control pressures corresponding to indirect and direct drivers of biodiversity and ecosystem change

2. Share of all beneficiary companies that do not assess, monitor or control pressures corresponding to indirect and direct drivers of biodiversity and ecosystem change

The new IUCN STAR metric is available through the IBAT as a scouting report, which will allow users to identify specific actions in specific locations that have the potential to quantifiably benefit threatened species globally. global scale. The use of STARs can allow beneficiary companies to assess, monitor or control their contribution to pressures on biodiversity. Investors can thus assess the extent to which beneficiary companies have complied with the requirement by using STAR to assess, monitor or control their contribution to pressures on biodiversity.

The second aspect of SFDR disclosure relates to natural (threatened) species and protected areas:

1. Share of investments invested in beneficiary companies whose activities affect IUCN Red List species and/or national conservation list species

2. Share of investments in beneficiary companies with operational sites owned, leased, managed in or adjacent to protected areas and areas of high biodiversity value outside protected areas

As the sole data provider of the IUCN Red List of Threatened Species, the World Database on Protected Areas and the World Database of Key Biodiversity Areas (i.e. areas of high biodiversity value) for commercial users, IBAT is ideally placed to inform companies about this element of disclosure . IBAT users can generate bespoke reports to filter specific projects and download raw data for additional internal analysis.

For more information on how IBAT can help your business, please contact [email protected]

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See the source version on newsdirect.com: https://newsdirect.com/news/ibat-and-the-sustainable-finance-disclosure-regulation-sfdr-751403521

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