Dalberg is a strategy consulting firm committed to building a more inclusive and sustainable world where all people, everywhere, can reach their fullest potential. Dalberg’s businesses provide high-level strategic, policy, and investment advice to the leadership of key institutions, corporations, and governments, working collaboratively to address pressing global problems and generate positive social impact.
FSD Africa Investments and Dalberg: The BIRA initiative initially focused on developing a viable investment assessment tool that offered guidance to interested actors. However, we want our work to be additive and not duplicative. As such, our mission has pivoted towards helping overlay an investor lens on existing tools and scaling the reach of these tools. Through our engagement with over 30 stakeholders, including investors and fund managers, we now understand how BIRA needs to make a strong case for biodiversity investments, and demonstrate real-life use of measurement tools, to bring onboard financial actors.
Biodiversity Investment Rating Agency (BIRA)
In portfolio since
Biodiversity is ranked as the third most significant threat to humanity, after carbon emissions and nuclear war. Yet, less than 16% of the required funding is currently available for biodiversity protection, leaving a US$ 700 billion funding gap for biodiversity conservation and restoration. Private capital can play a critical role in closing this funding gap while tapping into an attractive asset class that is poised to grow. For instance, between 2018 and 2019, Global Sustainability Linked Loans that offer incentives for companies to reduce their negative impact on nature increased by 168%1.However, investments are currently constrained because there is no standard way to measure, communicate, and track biodiversity impacts.
This unmet need sits at the heart of the BIRA initiative, launched by FSD Africa Investments and Dalberg. BIRA aims to identify existing tools and/or frameworks (hereafter referred to as ‘tools’) for biodiversity measurement and to facilitate investor access to tools that meet their needs. BIRA has completed its initial landscape scan and identified existing tools that can be potentially used by investors. It is now exploring how these tools can be customised to better meet the needs of investors. FSD Africa Investments and Dalberg are the initial co-investors in this initiative. BIRA is now inviting additional co-investors to join the founding partnership. This partnership will launch and test a biodiversity tool and/or an investor lens that can be used by financial investors.
Purpose and target market
Impact to date
We have adopted a three-phased approach to this engagement. We have finalised the first phase, where we have scanned the existing landscape of solutions. We are currently in the initial stages of Phase 2, which is focused on fine-tuning and testing a solution. In a future Phase 3, we will explore how the solution should be institutionalised.
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