Periodic Reporting for period 1 - NATURANCE (Nature for insurance, and insurance for nature)
Période du rapport: 2022-10-01 au 2024-03-31
The primary objective of NATURANCE is to explore the feasibility and effectiveness of financial instruments that integrate disaster risk financing, especially insurance, and investments with nature-based approaches, referred to as nature-based insurance and investment solutions (NBIIS). The project promotes the adoption of common guiding principles, performance metrics, and recommended approaches developed with interdisciplinary communities of knowledge and practice. It fosters dialogue, knowledge sharing, and mutual learning across various policy and practice domains, including climate, disaster risk, sustainable finance, and public policy at local and regional levels.
Nature-based insurance and investment solutions (NBIS) utilize nature-based solutions (NbS) and ecosystem services, embedding them within incentive frameworks to mitigate risks from extreme weather and climate-related events. The focus is on transforming financial instruments like insurance, bonds, or equity to leverage the value of ecosystem services. NATURANCE has designed and implemented activities related to community engagement, innovation, and analytical support. It collaborates with knowledge networks across four thematic domains: networks of cities and subnational governments, communities of experts in risk assessment and management, coalitions of NbS advocacy organizations, and networks of financial experts focused on green reforms. Community engagement involves organizing innovation festivals, workshops, and webinars. Innovation activities include open innovation labs that enhance creativity, problem-solving, and experimentation, bringing together representatives from various knowledge networks to develop innovative business models for NBIS. Analytical support is provided through comprehensive knowledge-gathering exercises, including desk reviews, interviews, and surveys.
Nature-based insurance and investment solutions (NBIS) utilize nature-based solutions (NbS) and ecosystem services, embedding them within incentive frameworks to mitigate risks from extreme weather and climate-related events. The focus is on transforming financial instruments like insurance, bonds, or equity to leverage the value of ecosystem services. NATURANCE has designed and implemented activities related to community engagement, innovation, and analytical support. It collaborates with knowledge networks across four thematic domains: networks of cities and subnational governments, communities of experts in risk assessment and management, coalitions of NbS advocacy organizations, and networks of financial experts focused on green reforms. Community engagement involves organizing innovation festivals, workshops, and webinars. Innovation activities include open innovation labs that enhance creativity, problem-solving, and experimentation, bringing together representatives from various knowledge networks to develop innovative business models for NBIS. Analytical support is provided through comprehensive knowledge-gathering exercises, including desk reviews, interviews, and surveys.
The community engagement capacity is one of the primary innovations of the NATURANCE project. The consortium has built strong connections with existing knowledge communities and networks (KNs) across four thematic domains: Networks of cities and subnational governments dedicated to sustainability, climate adaptation, and resilience; Communities of experts and practitioners in risk assessment and management; Advocacy coalitions for nature-based solutions; and Green finance coalition networks. These KNs comprise professionals, researchers, practitioners, educators, and other stakeholders who collaborate to create, disseminate, apply, and advocate for knowledge.
The project's objective is to establish a ‘Network of existing networks’ by connecting major knowledge networks and fostering cross-domain knowledge sharing and collaboration for innovative nature-based insurance and investment solutions (NBIIS). Since the project's inception, working relationships have been established with over 20 KNs, and periodic assessments of activities with these KNs are conducted. To facilitate collaboration with KNs, the project planned to host four festivals (both web and in-person), four technical meetings, and a series of 20-24 community webinars. Throughout the first 18 months, one festival was hosted, and preparations for the second one in month 20 are underway. Festivals include keynote speeches, pitch presentations, focus group discussions, World Café sessions, and outdoor activities like "Walk the Talk." The first webstival was held in June 2023, and the next in-person festival was in Vienna, May 23-24, 2024. Several workshops and eight webinars have also been hosted, with keynotes recorded and available in the digital library.
Another project goal is to initiate and organize innovation finance and policy labs to assess and explore new areas for insurance and investment solutions supporting NbS. The project aims to organize at least nine innovation labs with insurers, brokers, catastrophe modellers, NbS practitioners, advocates, and local and regional governments. These labs will test shared design principles and explore pathways to implementation. Innovation labs provide a dynamic space for collaboration among experts, entrepreneurs, and policymakers from knowledge networks. Using design thinking and user-centered design, these labs develop new financial services, investment models, and actuarial risk assessment methods. Organized in cohorts of three over 10 months, the labs are anticipated and reported back during the project’s festivals. During RP1, three innovation labs were organized, and community discussions on the second cohort of labs were fostered. The selection of topics for innovation labs is based on open and inclusive approaches, inviting KNs to submit, evaluate, and shape ideas to meet their objectives.
The project's objective is to establish a ‘Network of existing networks’ by connecting major knowledge networks and fostering cross-domain knowledge sharing and collaboration for innovative nature-based insurance and investment solutions (NBIIS). Since the project's inception, working relationships have been established with over 20 KNs, and periodic assessments of activities with these KNs are conducted. To facilitate collaboration with KNs, the project planned to host four festivals (both web and in-person), four technical meetings, and a series of 20-24 community webinars. Throughout the first 18 months, one festival was hosted, and preparations for the second one in month 20 are underway. Festivals include keynote speeches, pitch presentations, focus group discussions, World Café sessions, and outdoor activities like "Walk the Talk." The first webstival was held in June 2023, and the next in-person festival was in Vienna, May 23-24, 2024. Several workshops and eight webinars have also been hosted, with keynotes recorded and available in the digital library.
Another project goal is to initiate and organize innovation finance and policy labs to assess and explore new areas for insurance and investment solutions supporting NbS. The project aims to organize at least nine innovation labs with insurers, brokers, catastrophe modellers, NbS practitioners, advocates, and local and regional governments. These labs will test shared design principles and explore pathways to implementation. Innovation labs provide a dynamic space for collaboration among experts, entrepreneurs, and policymakers from knowledge networks. Using design thinking and user-centered design, these labs develop new financial services, investment models, and actuarial risk assessment methods. Organized in cohorts of three over 10 months, the labs are anticipated and reported back during the project’s festivals. During RP1, three innovation labs were organized, and community discussions on the second cohort of labs were fostered. The selection of topics for innovation labs is based on open and inclusive approaches, inviting KNs to submit, evaluate, and shape ideas to meet their objectives.
The most important results of the project include
Shared performance metrics for nature-based investment and insurance solutions are benchmarks to assess the effectiveness of financial products leveraging ecosystem services. These metrics evaluate risk reduction, ancillary benefits, and economic viability, enabling stakeholders to measure success through avoided damage, biodiversity indices, or economic returns. They enhance resilience, align with investor goals, and promote transparency and innovation in green finance.
Design principles for nature-based insurance and investment solutions integrate ecosystem services into financial instruments to reduce disaster risk, provide financial protection, and generate sustainable returns. These solutions align financial incentives with environmental conservation, supporting ecosystem preservation and restoration, and mitigating climate risks through investments in green infrastructure.
Nature-based transformative policy reforms and business investment cases integrate conservation and sustainable resource management into policymaking and economic models. These reforms address environmental challenges while promoting sustainable growth and well-being. Approaches include green infrastructure, sustainable land use, eco-innovation, nature-related risk reporting, and circular economy models. NATURANCE supports these transformations by fostering innovative financial instruments, scouting green businesses, and enabling social change.
Shared performance metrics for nature-based investment and insurance solutions are benchmarks to assess the effectiveness of financial products leveraging ecosystem services. These metrics evaluate risk reduction, ancillary benefits, and economic viability, enabling stakeholders to measure success through avoided damage, biodiversity indices, or economic returns. They enhance resilience, align with investor goals, and promote transparency and innovation in green finance.
Design principles for nature-based insurance and investment solutions integrate ecosystem services into financial instruments to reduce disaster risk, provide financial protection, and generate sustainable returns. These solutions align financial incentives with environmental conservation, supporting ecosystem preservation and restoration, and mitigating climate risks through investments in green infrastructure.
Nature-based transformative policy reforms and business investment cases integrate conservation and sustainable resource management into policymaking and economic models. These reforms address environmental challenges while promoting sustainable growth and well-being. Approaches include green infrastructure, sustainable land use, eco-innovation, nature-related risk reporting, and circular economy models. NATURANCE supports these transformations by fostering innovative financial instruments, scouting green businesses, and enabling social change.