Going above and beyond

Nature and people positive

Shifting towards nature- and people-positive financing is critical in the transition to financing that is free from deforestation, conversion, and associated human rights abuses, but also vital to aid the just transition to a low carbon economy.

Nature- and people-positive financing is finance that makes progress towards halting and reversing nature loss while respecting and protecting the rights of humans who are dependent on or inhabit the land in question. It is a vital part of the path towards a just transition. The Nature Positive Initiative highlights three key steps to achieve nature positivity, including zero-net loss of nature from the end of 2020, net nature-positive by 2030, and a full recovery of nature by 2050.

We strongly encourage all financial institutions, who can, to increase their investments in activities that provide benefits to people and nature. This must be done in tandem with eliminating deforestation, conversion and associated human rights abuses from financial portfolios, for those who have yet to do so. As defined, nature- and people-positive investments do not include offsetting carbon, biodiversity, or forests.

Recommended action 1: Look to increase finance to
activities with positive impacts on people and nature

Shifting towards financing which has a positive impact on people and nature is critical in the transition to an economy that is free from deforestation, conversion, and associated human rights abuses, and it is also vital to aid the just transition to a low carbon economy.

Financial institutions should seek to shift towards financing that seeks to halt and reverse nature loss. Efforts should ensure that the rights of all people, in particular Indigenous Peoples and local communities, are respected and protected and that affected communities are centred in any such efforts, in line with the concept of the just transition.

For financing of transition and restoration efforts to ultimately be effective, it must also be accompanied by action to phase out financing for activities that worsen the climate and nature crises. Therefore, alongside investment in activities with positive impacts on people and nature, financial institutions must have policies and implementation processes (as detailed in earlier phases of the Roadmap) in place to reduce and ultimately prevent deforestation, ecosystem conversion and human rights violations. Financial institutions must not use offsets as a substitute for limiting damage to nature.

Examples of such activities include:

  • Indigenous-led and community-led initiatives for forest and ecosystem protection, land rights protection, and community development
  • Finance directed to agroecological and small scale diverse economies and production, trade systems and steady state or circular economies
  • Technologies and technical initiatives bringing greater transparency and accountability to forest-risk commodity supply chains
  • Technologies and technical initiatives that create sustainable food systems, e.g. alternative proteins or animal feeds
  • Regenerative and climate-positive agriculture projects

Beneficial outcomes for people can also be achieved by creating new deforestation, conversion, and associated human rights free index funds which only provide finance to clients/holdings that are having a positive impact on people and nature. For financial institutions which cannot withdraw financing, creating these new financing products are a vital component of achieving portfolios that are free from deforestation, conversion, and associated human rights abuses and aiding the just transition.

Opportunities in sustainable supply chain management are expected to expand significantly, especially as regulatory requirements, market incentives, and consumer preferences evolve.

Key examples of financing activities orientated at providing benefits for people and nature are:

  • Indigenous- and community-led initiatives for forest and ecosystem protection, recognition of land rights, and community development in cattle-producing regions (e.g., Amazon, Cerrado, Pantanal)
  • Finance directed to diversified production systems, such as Agroforestry or Integrated Crop-Livestock-Forestry (ILPF), which restores degraded pastures, enhances productivity, and reduces greenhouses gas emissions
  • Support for smallholders, including access to credit through innovative instruments, prioritizing low-carbon and climate-resilient practices and actions
  • Technologies that increase transparency and accountability in the cattle supply chain, including satellite monitoring, cattle traceability systems and blockchain-based traceability
  • Climate-positive livestock initiatives, such as methane-reduction strategies (feed additives, improved pasture management, rotational grazing), restoration of degraded lands, and soil carbon sequestration projects
  • Circular and alternative models, including financing for sustainable feed production, recovery and reuse of by-products, and development of alternative proteins that reduce deforestation pressures.

A complementary approach is the creation of new financial products, such as sustainability-linked loans and green bonds, which channel resources exclusively to clients/holdings with verifiable positive impacts on ecosystems and communities. For financial institutions that cannot fully divest from high-risk exposures, these tailored financing products are a vital step toward achieving cattle sector portfolios that are free from deforestation, conversion, and associated human rights abuses, while supporting Brazil’s just transition to a low-carbon and inclusive economy.

This should be done before finance is approved and thereafter at least annually, to ensure that these activities and projects are contributing positively and effectively to climate change, biodiversity, and without restricting or infringing on the land rights of local and Indigenous communities.

  • Only finance investments which are also in line with your policy set within Phase 2
  • Only projects and activities which are evidenced to have secured the Free, Prior and Informed Consent of Indigenous Peoples and local communities and that have a process in place to identify and address conflicts over land rights should receive financing.
  • The Innovative Finance for the Amazon, Cerrado, and Chaco (IFACC) is an initiative by The Nature Conservancy, the Tropical Forest Alliance, and the United Nations Environment Programme (UNEP) to accelerate loans and investments for sustainable beef and soy production in the Amazon, Cerrado, and Chaco.
  • The article Finance for Standing Forests, by The Nature Conservancy, shows a study developed by IFACC and discusses investment opportunities in the bioeconomy for financial institutions, governments, and companies.
  • Innovative Mechanisms for the Implementation of Forest Restoration, by the Climate Policy Initiative, introduces the mechanisms being used in MATOPIBA for forest restoration, an agricultural frontier at high risk of deforestation in the Brazilian Cerrado.
  • Financing Forest Restoration, by FEBRABAN and Fundação Getúlio Vargas, discusses the identification of viable financing models from both financial and environmental perspectives for forest restoration.
  • Costs of Recovering Degraded Pastures in Brazilian States and Biomes, by the Bioeconomy Observatory, provides context on the distribution of pastures in Brazil and the strategies for recovery. It then describes the methodological approach adopted in the study, followed by the results and final considerations.

The Roadmap

Phase 1 Understanding and mapping risk

Phase 2 Setting an effective policy and managing risk

Phase 3 Monitoring and engagement

Phase 4 Disclosing

Phase 5 Eliminating deforestation

Going above and beyond Nature and people positive