The construction of dams, mines and large-scale agricultural operations requires huge amounts of money. Institutional investors such as banks, insurance companies and pension funds are usually the ones who provide that money. This means they have influence on the projects.
Benefits and risks
Financial institutions also benefit from preventing damage to people and nature. At the same time, they face risks when they invest in companies that have a negative impact on people and nature. It’s not always easy to fully identify these risks. Local conservation organisations can help with reliable information about the impact of a particular economic activity.
Support in seeking collaboration
However, conservationists and financial institutions often do not yet know how to find each other. To change this, IUCN NL, the Dutch Association of Investors for Sustainable Development (VBDO) and WWF-NL have supported civil society organisations in seeking collaboration with parties from the financial sector. For example, see this story from WWF Zambia on how to work with financial institutions.
