Many decisions taken by the financial sector require information on biodiversity impacts and dependencies. Within this wider landscape of decision making, the development of a biodiversity module to include in ENCORE aims to provide a platform for financial institutions to explore the alignment of their portfolios with global biodiversity goals.

To understand alignment of portfolios with biodiversity goals, the ENCORE biodiversity module provides a first measure of potential current impacts on biodiversity of investments, loans and insurance in key economic sectors within a financial portfolio. By integrating with scenario modelling, the module quantifies potential future impacts of the sectors and facilitates understanding of how the sectors can set targets for meeting global biodiversity targets. Users of the tool are then guided to actions that they can take as a financial institution that help deliver biodiversity goals.

This report sets out the methodology used in the ENCORE biodiversity module. To provide background to this proposed methodology, results are presented on a wider scoping process of available measurement approaches and future scenario models that have the potential to be incorporated within ENCORE as part of updates to the new biodiversity module.