Spatial Finance: Challenges and Opportunities
By WWF-SIGHT and World Bank
The World Wide Fund (WWF)-SIGHT team have published a white paper with the World Bank on spatial finance – a new geospatial driven approach with the potential to help financial markets differentiate commercial actors more accurately on their climate and environmental performance to aid realignment towards sustainable development.
The paper outlines a possible taxonomy and hierarchy for spatial finance, showing how discrete forms of technology, approaches and data can be considered within a single consistent framework.
It identifies three major data barriers to broad adoption of spatial finance:
- lack of reliable asset level data at required granularity and regularity,
- lack of supply chain data at required granularity,
- poor adaptation of observational climate and environmental data in financial applications.
It is suggested that there should be a dialogue between climate and environmental data experts and the financial sector to determine needs and iteratively develop data solutions.
The paper’s authors argue that environmental non-profit players, as primary holders of climate and environmental data, have a responsibility to ensure the best data is available and is applied correctly to provide spatial finance insights. Finally, they argue that such a holistic climate and environmental data portfolio should become a global public good.