This report does not constitute a rating action. The recently concluded COP17, held this year in Armenia, revealed a critical implementation challenge: 40% of participating countries still have to develop their national biodiversity strategies and action plans. S&P Global Ratings believes sustainable issuance is the primary avenue for debt capital markets to support the objectives of the U.N.'s global Convention on Biological Diversity (CBD), although broader structural impediments remain. At each biodiversity conference, the 196 participating countries meet to agree on decisions, targets, frameworks, and guidance for putting the CBD into practice. Most of these agreements are non-binding, however. Key agreements made at COP17 with implications for capital markets centered on three pillars: Understanding where corporates depend on nature for
