Geneva-based, international not-for-profit NatureFinance has unveiled NatureAlign, a new tool aimed at guiding financial institutions in aligning their activities with nature-positive outcomes, utilising the framework of the Biodiversity Plan (formerly known as the Kunming-Montreal Global Biodiversity Framework, or GBF).
The first module of NatureAlign enables private financial institutions, such as asset managers and banks, to assess their initial impact on nature—a critical step before redirecting financial flows from activities detrimental to nature toward those that foster positive environmental outcomes. Two major financial institutions piloted this module, including PIMCO, a global investment management firm overseeing over $2 trillion in assets.
According to the United Nations Environment Programme (UNEP), nearly $7 trillion, or about 7% of global GDP, is invested annually in activities harmful to nature each year. NatureAlign empowers financial institutions to track these impacts more effectively, helping them to steer portfolios toward sectors that protect and restore natural ecosystems.
Unlike other tools that focus on isolated aspects like biodiversity or water scarcity, NatureAlign uniquely combines these datasets, enabling comprehensive portfolio-level impact analysis. The tool is also freely accessible and aligns with the Corporate Sustainability Reporting Directive (CSRD) and the Taskforce on Nature-related Financial Disclosures (TNFD) LEAP framework (Locate, Evaluate, Assess, Prepare).
NatureFinance’s broader mission includes building biodiversity data resources, fostering nature-positive markets, and advancing financial innovations. NatureAlign represents the latest milestone in these initiatives.
Julie McCarthy, CEO at NatureFinance said, “Coming out of the UN biodiversity COP we can see two things clearly. Progress on saving nature is too slow, and money is not moving in the right direction. With our financial and economic system currently on track for 2-3C warming, financial institutions, like asset managers, asset owners and banks, are crucial to redirecting finance towards economic activities that deliver nature-positive outcomes. Financial institutions can dramatically transform both the business and natural landscape by proactively managing nature risks and seeking out nature positive opportunities in their decision-making. Innovative, accessible tools and data are critical to help them know where, how and in what to invest on a rapidly changing planet. We urgently need financial institutions’ leadership to align global investment with an economy that works for nature, climate and people.”
To use NatureAlign, financial institutions enter data on their investments and loans into a ‘watchlist.’ The tool then leverages third-party biophysical, spatial, and financial datasets, including the exclusive SEED Biocomplexity Index from ETH Crowther Lab, providing insights unavailable in other tools. Within seconds, the tool generates maps and statistics that illustrate the state of nature, water risks, critical natural assets, and ecosystem protections in the geographies where the institution’s investments or loans are active. It further assesses the exposure of sectors within the watchlist to nature-related dependencies and impacts, flagging sectors and areas that exceed set parameters to encourage targeted action. Users also receive estimates of two core sector metrics recommended by the TNFD: exposure to sectors with material nature-related dependencies and impacts, and exposure to sensitive locations.
Sarah Krisht, Nature Risk Lead at NatureFinance said, “Our aim with NatureAlign is to develop a tool which is accessible and helpful in order to drive progress in their nature journey and better track their impact on nature. User needs are at the core of NatureAlign which is why we engaged with over fifteen financial institutions in developing it, and hope to continue this iterative engagement.”
NatureFinance envisions future modules of NatureAlign that will potentially offer frameworks for assessing alignment with the GBF, deliver structured recommendations for setting nature-related targets, and allow institutions to analyse the impact of altering their investments on natural ecosystems.
