[2025-July-07] WG1 Seminar on Navigating Nature-related Risks Part II
On the afternoon of 7 July 2025, Working Group 1 of the Green Investment Principles (GIP) for the Belt and Road Initiative held a seminar in Beijing titled "Navigating Nature-related Risks: Part II." The WG1 is co-chaired by the Industrial and Commercial Bank of China (ICBC) and Swiss Re, with PwC serving as the secretariat.
This seminar built on the “Navigating Nature-related Risks Part I” event hosted by WG1 in March 2024, aiming to further explore the role of financial institutions in biodiversity conservation and practical approaches to managing nature-related risks. The event coincided with a visit to China by colleagues from GIP Regional Offices and brought together representatives from across GIP’s working groups on-site. In total, more than 60 participants from commercial banks, insurance companies, research institutions, and international organizations joined the seminar, both in person and online.
In his opening remarks, KANG Li, Director at the Modern Finance Research Institute of ICBC, noted that climate change and biodiversity loss are emerging as key drivers of financial risk. He emphasized the need for financial institutions to improve their data quality, enhance risk management tools, improve disclosure mechanisms to better identify and respond to nature-related risks. He also called for stronger collaboration between the financial sector and policymakers to advance the practical implementation of nature-related risk management.
Adam Ng, Advisor to the Capacity-building Alliance of Sustainable Investment (CASI) , delivered his keynote presentation on “Recent Development in Nature-Related Financial Policy and Regulation.” He noted that an increasing number of countries are integrating nature-related risks into prudential regulatory frameworks, covering areas such as capital requirements, disclosures, and due diligence. He highlighted. the 2024 UNEP FI–WWF report Navigating Nature-related Regulations for Banks, which highlights the need for a policy enabling environment that includes taxonomies, corporate disclosure requirements, and incentives. While the level of progress on building such environment varies by region, he pointed out that Europe currently has the most robust regulatory framework. Adam concluded by recommending that financial regulators provide clearer supervisory guidance on nature-related risks to better support the financial sector in managing them effectively.
HAN Zhengyang, Senior Manager of Sustainability Consulting at PwC, launched the WG1 report titled Financial Support for Biodiversity under the Belt and Road Initiative. The report builds on findings from the survey conducted in 2024, which gathered insights from 22 GIP member institutions, including banks, asset managers, and insurance companies. It explores their understanding, practices, and challenges related to biodiversity financing. The respondents are based in Belt and Road regions including Central and Southeast Asia.
Han Zhengyang noted that while most institutions have begun to focus on potential risks arising from climate change, land use, and other factors—and recognize the reputational and market impacts of biodiversity loss—the application of practical tools remains at an early stage, with assessment frameworks and policy support still lacking. He called on financial institutions to strengthen collaboration and leverage both policy guidance and market mechanisms to shift from a supply-driven to a demand-driven approach, thereby enabling deeper integration of green finance into biodiversity conservation.
Panel Discussion
The Panel Discussion section invited Assel Nurakhmetova, Director of Carbon Platform Department, Astana International Financial Centre (AIFC); Via Azlia Widiyadi, Research Associate. Climate Policy Research Unit, Centre for Strategic and International Studies (CSIS), Indonesia; YU Yinghong, Vice President of ICBC Huzhou Branch; and Yuan Yuan, Senior Vice President in the Corporate Sustainability Department at HSBC. The speakers shared their perspectives on the opportunities, challenges, and lessons learned in financing biodiversity conservation.
YU Yinghong shared ICBC Huzhou Branch’s experience in assessing biodiversity-related risks. Working in partnership with local institutions, the branch developed a quantifiable and replicable assessment framework based on the Pressure-State-Response (PSR) model to help identify and manage the impacts of projects on biodiversity. She noted that the initiative has shown early results, supported by local policies and the bank’s access to relevant data. However, she pointed out ongoing challenges in tracking project impacts over time and ensuring transparent disclosure. Looking ahead, she called for improved policy coordination and enhanced data sharing to create a stronger green finance system that benefits both biodiversity and sustainable economic growth.
Assel Nurakhmetova shared insights on biodiversity financing in Central Asia, with a focus on Kazakhstan. She pointed out that the region still faces gaps in risk awareness, capacity building, and supportive policies related to biodiversity. However, countries are increasingly prioritizing climate risks. Some have introduced mandatory sustainability reporting requirements, launched ecological protection initiatives, and established carbon trading platforms. They are also proactively aligning with international standards and investors to enhance domestic biodiversity conservation.
Yuan Yuan shared the experiences and challenges commercial banks face in developing biodiversity-related financial products. She noted that commercial bank products are constrained by short financing maturities, while the cycle for biodiversity to generate financial returns is much longer, making it difficult for such products to deliver real impact. Limited by policy, technology, and market mechanisms, projects that can balance commercial returns with positive biodiversity outcomes remain scarce globally. However, she pointed out that by starting from the asset management side, matching long-term investment clients, and leveraging tools such as technical certification and investment in carbon sink assets, it is possible to achieve both.
Via Azlia Widiyadi provided an overview of biodiversity financing and recent developments in nature-based solutions (NbS) within ASEAN. She noted that although receiving increasing attention, NbS projects remain on the periphery of sustainable finance, relying heavily on international funding and lacking long-term, sustainable market mechanisms. While some ASEAN countries have begun exploring carbon market mechanisms to support the commercialization of NbS, overall project financing still depends largely on the international aid. She recommended accelerating the establishment of harmonized regional standards to increase the bankability of projects and encourage broader private sector engagement.