The evening began with Theodor Cojoianu framing the central challenge: examining how communities of practice, particularly investors in the financial sector, can address nature protection.
He posed two key questions: "What are the main use cases that we should focus on?" and "How do we solve this nature challenge?" These questions set the foundation for exploring the intersection of financial markets and nature protection.
Opening Session
Dean Gavin Jack set the context by highlighting the University of Edinburgh Business School's pioneering role in sustainable finance, including launching the world's first MSc in Carbon Finance in 2010.
He emphasized the importance of cross-disciplinary collaboration and diverse knowledge sources in addressing climate and nature-related challenges, drawing from his experience at Monash University in Australia.
Keynote Address
Eva Cairns, Head of Responsible Investment at Scottish Widows, delivered a comprehensive keynote that examined nature's significance for asset owners.
She presented three fundamental aspects: the economic importance of nature, with $44 trillion of global GDP dependent on natural systems; the critical role of food systems in climate and biodiversity challenges; and practical approaches for asset owners through integration, allocation, and stewardship.
Scottish Widows' experience in assessing £150 billion of assets provided concrete examples of implementing these approaches.
Panel Discussion
The panel discussion brought together diverse perspectives on operationalizing nature finance:
Marc Metzger emphasized the necessity of bridging ecological complexity with financial decision-making, cautioning against oversimplification while acknowledging the need for practical metrics.
Craig MacKenzie provided insights into the UK's approach to nature protection, discussing the transition from government grants to market mechanisms. He explored the potential and limitations of applying the UK model globally, particularly regarding biodiversity credits and market structures.
Sam Fleming addressed technological innovation, arguing that while current technology is sufficient for measuring and monitoring nature, the key challenges lie in operationalization and scaling. He emphasized the need for mindset shifts in both scientific and financial communities.
Margarita Skarkou concluded by examining the balance between public and private sector roles, emphasizing the importance of government frameworks in creating proper incentives while highlighting opportunities for data innovation and blended finance models.
The event demonstrated the complex interplay between scientific understanding, policy frameworks, and financial mechanisms needed to address nature protection effectively. It established the Nature Finance Lab as a crucial initiative for developing practical solutions to bridge these diverse perspectives and approaches.