More than 130 businesses and financial institutions, including Aldi Sued, BNP Paribas Asset Management, Danone, Decathlon, Federated Hermes Limited, H&M Group, Legal & General, L’Occitane en Provence, Mahindra Group, Triodos Bank, Rabobank and Unilever have united ahead of the UN Biodiversity COP17 to call on governments to reform the fiscal and financial incentives that currently distort markets and threaten long-term economic and supply chain security.
The open letter is an invitation to change what existing public finance rewards. Realigning public spending ensures that sustainable, resilient production naturally becomes the most competitive choice for every business, rather than a costly exception.
Currently, at least US$2.6 trillion a year of public spending, close to 2.5 per cent of global GDP, unintentionally rewards practices depleting the soils, water and ecosystems which support global trade.
While 196 countries committed under Target 18 of the Kunming-Montreal Global Biodiversity Framework to identify and reform nature-harmful incentives by 2025 and reduce them by at least US$500bn annually by 2030 – only five per cent have set comprehensive national targets so far.
With COP17 in Yerevan set to be a critical moment for assessing countries’ progress, businesses and financial institutions are coming together around a shared ask: accelerate reform and involve those affected in designing how it works in practice.
Signatories also include Arcadis, Bel Group, Danske Bank, Natura, Nestlé, Ørsted, Storebrand Asset Management, Tetra Pak, and Vattenfall.
Together, they represent more than US$600 billion in combined company revenues and US$4.7 trillion in assets under management, and are ready to bring their experience and insight to that process. Specifically, they are asking governments to:
- Align public policy and spending to reward practices that conserve vital resources, making the resilient choice the most competitive one.
- Establish cross-ministerial national platforms to develop reform plans with business, finance, producers, civil society, local communities, and Indigenous Peoples.
- Design reform plans that are economically effective, socially equitable, and supportive of local communities, farmers, and Indigenous Peoples.
Businesses and finance signatories are taking action to support reform for example by assessing and disclosing how their activities depend on and impact nature, building resource security into their strategies, and offering insights to help policymakers design practical, credible reform plans.
The open letter is coordinated by Business for Nature and the Finance for Biodiversity Foundation. It is being published as governments and businesses gather at the UN Biodiversity COP17 in Yerevan, and ahead of the G20, IMF and World Bank Annual Meetings – providing opportunities for governments to build momentum to accelerate national action.
Read the open letter
“Public money already shapes what our economies produce, whether we directly see it or not. Changing what it rewards is one of the most powerful levers governments have to secure the water, soils and raw materials that businesses, economies and societies depend on. The businesses and financial institutions uniting behind this call are showing they are ready to support change and work with governments to accelerate this positive transition.”Eva Zabey, CEO, Business for Nature
“We cannot ask financial institutions to align their activities and investments with nature while public incentives continue to pull capital in the opposite direction. Governments need to reform harmful subsidies and create positive incentives for nature. This is essential to redirect financial flows and enable private finance to invest at scale in the transition.”Anita de Horde, Co-Founding Executive Director, Finance for Biodiversity Foundation
“Nature is not external to business; it underpins every value chain. At L’Occitane, around 90% of our raw materials contain at least one plant-derived ingredient, making healthy soils, water and ecosystems critical not only for long-term resilience and supply security, but also for innovation. Incentive reform is an opportunity to better align public finance with this reality and accelerate investment in sustainable practices. But the transition must be co-created with producers, businesses and investors to succeed at scale.”Raphaëlle Archambeaud, Chief Sustainability Officer, L’Occitane en Provence
“Financial institutions must reduce the harm to nature in what they finance. Starting today. But finance alone cannot shift capital at scale. The rules have to change, in finance and in the wider economy. Governments still spend hundreds of billions on subsidies that destroy nature, including support for fossil fuels. Under Target 18, they promised to reform these incentives. Every year of delay pushes money in the wrong direction. Only when governments reform harmful subsidies can public and private capital work together for resilient food systems and healthy ecosystems.”Hans Stegeman, Chief Economist, Triodos Bank
“Operating across global value chains, we see firsthand how smart market incentives can accelerate sustainable transformation. Clear and forward-looking policy frameworks give businesses the certainty needed to invest at scale. It ensures the resilient choice becomes the standard, competitive choice for everyone.”Matthieu Brière, Head of Sustainability and Industrial Processes, Decathlon
“Farmers are our key stewards of soil and water; yet they face growing economic and environmental pressures. We are investing to help build more resilient agricultural supply chains, but meaningful scale can only be achieved through collaboration across businesses, policymakers and value chains. No company can drive this transition alone. The right incentives and policies can accelerate the transition while strengthening the competitiveness, resilience, and long-term viability of agricultural systems.”Christopher Adamo, Head of Global Sustainability Impact and B Corp, Danone
“For businesses operating across global value chains, clear and consistent market signals are essential for long-term planning and investment. Better alignment between public incentives, economic priorities and sustainability goals can help create the conditions for resilient supply chains, informed business decisions and a successful transition to more sustainable production systems.”Jennie Granström, Biodiversity Impact Lead, H&M Group
“Our assets run for decades so investment decisions depend on having clear and predictable conditions for the long-term. Well-designed incentives can give businesses greater confidence to invest, and reduce the risk that today’s decisions are undermined by tomorrow’s resource conditions. We stand ready to work with governments and communities to implement policies that hold up in practice.”Helle Herk-Hansen, Vice President Environment, Vattenfall AS
“Building resilient economies requires us to protect the natural systems that support communities, supply chains, and future growth. Public finance is one of the most powerful tools governments have to shape economic behaviour, and well-designed incentives can help direct investment towards more resilient outcomes for people, nature and business.”Anders Johannes Enghild, Head of Global Sustainability, Ørsted
