New tool enables financial institutions to assess their exposure to natural capital risk

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The guide ‘Exploring Natural Capital Opportunities, Risks and Exposure’[1] on assessing exposure of financial institutions to natural capital risks confirms the growing interest and need of those institutions on understanding how different economic sectors depend on the environment and the consequences when that relationship is disrupted by environmental change.

As financial institutions are exposed to natural capital risks (climate change, biodiversity degradation, ecosystems services reduction) that affect the businesses that they lend to or invest in, this kind of tool will assist financial institutions in carrying out natural capital assessments in different sectors.

[1] Exploring Natural Capital Opportunities, Risks and Exposure: A practical guide for financial institutions, Natural Capital Finance Alliance and UN Environment World Conservation Monitoring Centre (Geneva, Oxford and Cambridge), 2018.