This issue of the Business.2010 newsletter, which focuses on biodiversity in the financial services sector, is being released on the occasion of the UNEP FI 2007 Global Roundtable. I would thus like, first and foremost, to wish participants to this important event much success and fruitful discussions. I am particularly pleased that the Roundtable will provide the opportunity to illustrate the business case for biodiversity with, amongst other things, the launch of a CEO Briefing dedicated to biodiversity. I very much hope that this publication will resonate with many executives in the financial community. The financial services sector influences the rest of the economy in many profound ways — it is for this reason that Parties to the Convention, in adopting, in Curitiba in March 2006, the decision aimed at engaging business, have made a special reference to UNEP FI. It is therefore very encouraging to observe an increasing interest for biodiversity issues among the financial community.

From COP-8 to COP-9
Several events in the financial services sector which have occurred since COP-8 are extremely relevant to the work of the Convention. These include the UN Principles for Responsible Investment (PRI), launched in April 2006 at the New York Stock Exchange and in May 2006 at the Paris Bourse. The PRI, a joint initiative of the UNEP Finance Initiative and the UN Global Compact, mark an important step towards embedding Environmental Social and Governance issues into decision making. The PRI sends a clear message: ESG issues are no longer just for a fringe and exotic group of investors but have become strategic concerns for mainstream, forward looking, players. In time, the PRI will no doubt prove a significant entry point for biodiversity (also an ESG issue), for many financial institutions.

In late 2006, the UNEP Finance Initiative also established its first work stream on biodiversity and ecosystem services. I would like to congratulate the leading banks which have championed and carried this idea through. The CBD Secretariat has been delighted to actively participate in the Steering Committee of this workstream. I think that COP-9 will provide a very timely platform to discuss, amongst other things, progress on the development of a biodiversity benchmark which UNEP FI is developing, with a number of partners, for the food and beverages sector.

The financial services sector was, of course, actively involved in COP-8. The two day workshop organized by the Brazilian Foundation for Sustainable Development on the margins of the COP provided a particular focus on the financial services sector; the second edition of the biodiversity benchmark (which focused on mining, oil & gas, and utilities) was launched by Insight Investment and Fauna and Flora International; and the International Finance Corporation (IFC) launched its Private Sector Guide to Biodiversity as well as played a critical key role in ensuring the success of the business and biodiversity breakfast organized on the margins of the High Level Segment.

Responsible financial products
Over the years, financial institutions have experienced, often the hard way, the consequences of ignoring environmental issues associated with their investments. I believe that an increasing number of FIs now see the linkages and their responsibility in ensuring that environmental and social issues, including biodiversity, are taken into account. The industry is also using its inventiveness and leverage power to pro-actively address environmental challenges and sometimes turn these into business opportunities. This is evidenced with climate change, where new financial products have emerged and whole new markets have been created. This trend is now slowly shifting to biodiversity, as described in some of the articles contained in this issue. We are indebted to contributors for taking the time to highlight these market changes and to share their enthusiasm for building responsible financial products.

Articles in this issue cover a wide range of actors, including providers of micro-finance, mainstream retail banks, institutional banks, asset managers and multi-lateral banks. The issue showcases some of the leading efforts to address biodiversity, including through individual policies, global standards and the creation of new financial assets. This issue also considers the specific financial needs of ‘biodiversity-based’ SMEs in emerging markets. Clearly, biodiversity is becoming an increasing issue for the banking sector — but much still needs to be done and, in this regard, a number of contributors make several concrete suggestions. I would like to invite Parties, the financial services sector and other interested actors to consider the relevance of these suggestions to the work of the Convention, in light of the upcoming COP.

Business and biodiversity
I would like to applaud the European Union initiative , under the leadership of Portugal, to convene in Lisbon on 12-13 November a high level event on Business and Biodiversity. This meeting, the first of its kind, will make a significant contribution in operationalizing the decision taken by the Parties in Curitiba and in paving the way for enhancing the partnership with the business community at the occasion of the ninth meeting of the Conference of the Parties to be held in Bonn, Germany, on 19-30 May 2008. The Secretariat is also actively engaged with Canadian partners for organizing a dialogue on biodiversity, starting in early 2008, with the Canadian business community. A follow up event to the 2005 London and São Paulo business meetings, organized in conjunction with Brazil and the United Kingdom, is also being planned.

These events will provide valuable inputs to Parties when they will meet in Bonn in May 2008. In this regard, I am indebted to Mr. Jochen Flasbarth, of the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, for providing an update on preparations for COP-9. Throughout its EU and G8 presidency and now as Host to the next COP, Germany has placed a particular emphasis on business and biodiversity. Over the last few months, the CBD Secretariat has been liaising closely with the German government with respect to the German Business and Biodiversity Initiative. With this in mind, I invite companies, industry associations and organizations interested in business and biodiversity to contact the Secretariat and/or the German organizers to signal their interest in participating in the exhibition which will also be organized at COP-9. The Secretariat has, more generally, been receiving an increasing number of requests and suggestions for the COP. In particular, the Secretariat was approached with the idea of organizing, throughout the COP, a business and biodiversity ‘clinic’ (a suggestion which was first made in the May issue of this newsletter) — the Secretariat welcomes feedback on this proposal.

This is the last issue of the newsletter for 2007, in what has and continues to be a very lively year for business and biodiversity. The calendar is already lined up with two important issues in early 2008. The first will focus on Access and Benefit-sharing, and will be published to coincide with WGABS-6. The second, which will be released in February to coincide with SBSTTA-13, will focus on agribusiness. Finally, we will be releasing a more general issue on business and biodiversity ahead of the COP. I invite interested contributors to contact the editor for additional information. Let me also sincerely thank the twelve members of the advisory committee for agreeing to help the Secretariat in the continuous development of this newsletter. As always, we also look forward to your feedback and suggestions.