Biodiversity loss poses material risk to the global economy, with an estimated half of global GDP moderately or highly dependent on nature. Yet financial markets lack robust tools to fully identify and manage nature-related risks. As central banks and regulators grapple with nature-related financial stability risks, and as the exposure of businesses and financial systems to ecosystem degradation becomes clearer, how do financial institutions face a pressing question: how to adequately measure, assess and address broader nature risks? At the same time, investors are seeking practical ways to incorporate biodiversity considerations into investment processes.
This panel will explore emerging approaches, the role of central banks and ministries for finance to prioritising nature-related risks, improving data and measurement frameworks, strengthening risk disclosures – particularly across supply chains and the real economy- and enhancing risk governance. Topics will also include innovative blockchain based assessment tools, and the respective roles of both private and public financial institutions in managing systemic nature-related risk and supporting more resilient economic outcomes.