introduction to gbs for financial institutions (gbsfi) · 2021. 1. 25. · key concept: assessing...

Introduction to

GBS for Financial

Institutions

(GBSFI)

21 January 2021

❑ 3:00 pm: Welcome

❑ 3:05 pm : Introduction

Antoine Cadi (Director of research and innovation at CDC Biodiversité)

❑ 3:10 pm : International context and & call for more financial institutions to join

the Finance for Biodversity Pledge

Anne-Marie Bor (Finance for Biodiversity Pledge)

❑ 3:30 pm : Introduction to the GBSFI

Antoine Vallier (GBS expert at CDC Biodiversité)

❑ 4:10 pm: Biodiversity Impacts Analitycs (BIA) database

Marie-Anne Vincent (Head Of Business Development at Carbon4 Finance)

❑ 4:35 pm : GBSFI with custom data

Laurent Deborde (Head of Equity Portfolio Management & Fund Selection at

Groupe Caisse des Dépôts’ Asset Management Division)

Agenda

PAGE 2

Introduction by Antoine Cadi

Introduction to the GBSFI

Presentation plan

1. A brief history of the GBS

2. GBS key concepts

3. Focus on data

4. Aggregated score

5. GBS ecosystem

6. Q&A

1. A brief history of the GBS

GBS milestones and perspectives

Milestones

❑ GBS project started in 2015

❑ Club B4B+ launched in 2016

❑ End of GBS’s first review committee in January 2020

❑ GBS 1.0 launched in May 2020

❑ Schneider Electrics finished the first Biodiversity Footprint Assessment in

July 2020

Perspectives

❑ Strong support of our shareholder Caisse des Dépôts

❑ Team of 6 persons fully dedicated to the project with on going recruitment

for 4 new positions: www.cdc-biodiversite.fr/nous-rejoindre/

2. GBS key concepts

GBS Key features

• Ecosystem integrity

• MSA.km²1. Aggregated

metric

• Permanent impacts vs additional impacts

2. Impacts’ stock and flows

• Scopes3. Full value

chain

Key concept: assessing pressures on biodiversity

❑ GBS essentially quantifies the contribution of economical activities to pressures on biodiversity

❑ GLOBIO model (PBL) is then used to translate the information on pressures into potential impacts on biodiversity

GBS

Pressures detail

Terrestrial

▪ Land use (LU)

▪ Fragmentation (F)

▪ Encroachment (E)

▪ Eutrophication (N)

▪ Climate change (CC)

▪ Ecotoxicity (X)

Aquatic (freshwater)

▪ Wetland conversion (WC)

▪ Land use in catchments (LUR &

LUW)

▪ Freshwater Eutrophication (FE)

▪ Hydrological disturbance (Hdwater &

HDCC)

▪ Ecotoxicity (X)

Missing

▪ Invasive species

▪ Marine biodiversity

▪ Overexploitation

Metric: GBS uses MSA metric which evaluates ecosystems

ecological integrity on a scale from 0% to 100%

Fo

rest e

co

syste

mMSA = 100%

MSA = 70%

MSA = 50%

MSA = 30%

MSA = 10%

1 MSA.m² lossis equivalent to

the artifitialization of 1 m² of

pristine natural ecosystem

Metric: GBS evaluates impacts in MSA.km²

Going from 100% MSA to 40% MSA

on 100 m² equals to

a 60 MSA.m² loss(100 MSA%- 40 MSA%) x 100 m²

𝑴𝑺𝑨.𝒎2

MSA% value Impacted surface

Key features: GBS accounts separately permanent

and additionnal impacts

Static impacts

➢Biodiversity state

Dynamic impact

=

Dynamic impacts

➢Biodiversity changes

-

Direct impactsScope 1

Impacts due to energy purchases

Scope 2

Upstream and downstream

Scope 3

Key features: GBS uses scopes framework to

account for impacts along the value chain

3. Focus on data

Stepwise approach

PAGE 17

Data hierarchy

• Fauna inventories

• Flora inventoriesSurvey

• GHG

• Land use type/ surfacePressure

• Extraction/ production

• Pollutions

Raw materials

Physical flows

• Turnover

• PurchasesFinancial

Accuracy

Availability

PAGE 18

4. Aggregated score

Biodiversity footprint: 4 compartments

2 dimensions/ 4 compartments to be aggregated

Combining terrestrial and aquatic

PAGE 21

130 million km² 11 million km²

aggregates terrestrial and aquatic impacts by expressing

both as a fraction of their respective surface area and

multiplying by 10^9 (parts per billion)

MSAppb

Part per billion (ppb): used for proportions,

corresponds to a ratio of 10^-9

It can be used for intensities also, e.g. to express MSA.m²/kEUR in MSAppb/bEUR

1

10−9

Respective areas of terrestrial and

aquatic ecosystems

❑ Recovery time assumption: 50 years + linear curve

❑ Inline with time integrated metrics such as PDF.m2.yr

Combining dynamic and static impacts

PAGE 22

• Static impacts can be seen as a missed opportunity for biodiversity

recovery

• This opportunity can be estimated to 1/50 over 1 year

• To compare static and dynamic impacts, we divide static impacts by 50

(assuming dynamic impacts are computed over a 1-year period)

MSA

score

Aggregated score: example

PAGE 23

Impacts of the company

1 MSA.km² 10 MSA.km²

8 MSAppb 46 MSAppb

Impacts in MSA.km²

Impacts in MSAppb

Impacts in MSA score

88 MSAppb

Static Dynamic

100 MSA.km²

Static Dynamic

0.5 MSA.km²

800 MSAppb 920 MSAppb

Static Dynamic

54 MSAppb1720 MSAppb

54 MSAppb34 MSAppb

5. GBS ecoystem

GBS ecosytem

❑ 2 main pillars: biodiversity footprint tool for companies and investors

❑ CDC Biodiversité provides dedicated trainings

❑ Audits protocols to be developped

Members and partners of the B4B+ Club

PAGE 26

Members and partners of the B4B+ Club

PAGE 27

Strong links with the international framework

CDC Biodiversité is heavily involved in national and international

convergence and reporting initiatives.

❑ CDC Biodiversité is involved in the main business & biodiversity

platforms: EU Business & Biodiversity (B@B), Proteus (mining

and oil & gas platform), Orée, EpE, Natural Capital Coalition

❑ We contribute to the emergence of national ("plateforme RSE",

regular meetings with the French Biodiversity Office,

environment and finance ministries…) and international

reporting framework (GRI, EU Green taxonomy…)

❑ We also participate to methodological convergence

collaborations such as ALIGN

GBSFI within GBS ecosytem

❑ Collaboration with data providers (Carbon4Finance) to deliver biodiversity

footprint data by 2021

❑ Collaboration directly with investors to assess their impacts: Mirova (pilot),

BNP AM (pilot), CDC, MAIF (non listed assets),…

GBSFI

6. Q&A

More information

❑ About the Club B4B+ : www.cdc-biodiversite.fr/laction-volontaire/en-savoir-plus-sur-le-

club-b4b/

❑ Our publications in English: www.mission-economie-biodiversite.com/english

❑ Our publications in French: www.mission-economie-biodiversite.com/type-

publication/cahiers-biodiv2050

❑ Recruitment: www.cdc-biodiversite.fr/nous-rejoindre/

❑ Contacts:

❑ GBS Team: gbs@ cdc-biodiversite.fr

❑ GBSFI: Antoine Vallier, antoine.vallier@cdc-biodiversite.fr

❑ DRI: Antoine Cadi, antoine.cadi@cdc-biodievrsite.fr