Sustainable blue finance
Unsustainable commercial activities and ineffective governance are eroding the natural capital on which economic growth depends. There are opportunities for current and future generations to thrive alongside nature in a sustainable blue economy, but only if the Baltic finance community supports economic development that values, restores, and protects our Sea.
Why are we concerned?
The Baltic Blue Economy is currently some distance from becoming a Sustainable Blue Economy which would ensure thriving nature and the availability of resources in perpetuity.
Business as usual is no longer an option. Environmental degradation from economic activities poses enormous risks for the finance world. Environmental health should be factored into investment decisions to reduce this risk and lead to the much-needed redirection of wealth towards companies that value a sustainable blue economy.
However, well-targeted and sustainable finance can accelerate the transition to a Sustainable Blue Economy by flowing into companies and sectors that have overall positive environmental and social impacts on the Baltic Sea region. On the other hand, they could also substantially hinder the transition if unsustainable activities continue to be supported.
What is the WWF Baltic Programme doing?
Incentivize all Baltic Sea financial institutions to adopt the Sustainable Blue Economy Finance Principles
These principles complement existing frameworks in sustainable finance and recognise the importance of compliance, transparency and disclosure, as well as the specific challenges of investment in the context of the ocean. Beyond setting out ocean-specific standards allowing financial actors to mainstream the sustainability of ocean-based sectors, the sustainable blue finance principles promote the implementation of SDG 14 (Life Below Water). They are the foundational keystone to investing towards implementing a sustainable ocean economy.
Sustainable Blue Economy
Influence actors to redirect investments towards sustainable economic activities
WWF Baltic supports the mainstreaming of environmental health metrics into finance. Through collaboration, research and advocacy, we are working to integrate environmental and ocean health metrics into mainstream investing and lending. Failure to do so puts the capital of financial institutions and their fiduciary duty at risk. We continue to build the case on the importance of understanding the material impacts of the environment on business.
Support our partners to advocate at the national level for the EU Action Plan on Financing Sustainable Growth
In the mission to shift the Baltic seascape economy from its untenable business-as-usual state toward a sustainable blue economy, which allows ecosystems and economies to thrive in the long term, the following actions are needed: Reorient capital flows towards sustainable investment to achieve sustainable and inclusive growth, foster transparency and long-termism in financial and economic activities, commit to and finance a transition that is both Net Zero and Nature Positive.
Promote more transparent and sustainable business and investment practices
WWF Baltic works to position ocean health as part of the EU taxonomy compliance work of financial service institutions to ensure more transparent and sustainable business investment practices in the region. It is important for investors to be able to make decisions on sustainable investments based on information on the sustainability claims of the investment. Without standardized reporting frameworks harmonized across regions and practice areas, greenwashing can occur. WWF in partnership with others works to guide investors through sustainability criteria that are science-based and take into account an ecosystem-based approach.
Provide a clear indication to investors of where risks lie within each marine sector
Biodiversity loss, ecosystem collapse, and climate change pose some of the biggest risks to financial institutions. The Baltic Sea is being impacted by human activity, which is fast changing how marine-dependent businesses operate within it. Marine-based economic sectors do not act—or have impacts—in isolation. The synergistic and antagonistic relationship between sectors has been modelled in part using a systems modelling approach in the Value at Risk in the Blue Economy and Navigating Ocean Risk reports. Demonstrating what we have to lose if we continue to invest in business as usual. It also shows what we could gain if we choose to invest in more sustainable business models that safeguard marine resources.
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