Financial Stability Board (FSB)’s Post

Financial authorities are increasingly recognizing the economic implications of nature degradation and biodiversity loss. At the G20 meeting in Rio, a new report will be presented, highlighting early efforts to address these nature-related financial risks. This stocktake provides valuable insights into how regulators are beginning to integrate nature and biodiversity considerations into their frameworks. It's a crucial step toward a more sustainable and resilient financial future. #NatureRisk #SustainableFinance #G20 #Biodiversity #FinanceForFuture

Interrelationship between finance and nature is increasingly apparent. The comprehensive Financial Stability Board (FSB) stocktake, is indicative of the nature-related risks exposure to FIs’ investments and financing activities. The report reiterates several challenges from data and climate modelling complications, to lack of standardised frameworks, low capacity and expertise to accurately assess and manage, the increased uncertainty and long-term horizons, and limited comprehensive disclosures coupled with information asymmetries. All underscoring the complexity of assessing nature-related financial risks, making continued research, collaboration and capacity building a significant area for FIs to work on.   It recognises the contribution of international organisations in standardising assessments like Taskforce on Nature-related Financial Disclosures (TNFD) or Network for Greening the Financial System (NGFS)’s Conceptual Framework for Nature-related financial risks, as it provides a common language across jurisdictions, with a strong potential to cross collaborate. Thus, ensuring consistency and coherence in assessment and management of nature-related risks across the financial sector. Overall, kudos to FSB! #NatureRelatedRisks #ClimateFinance #BiodiversityFinance

Our report, published on 18 July, takes stock of regulatory and supervisory initiatives associated with the identification and assessment of nature-related financial risks and presents key challenges for authorities in identifying, assessing and managing these risks, including: - General guidance and requirements on nature-related risks - Guidance and requirements on firm-level disclosures - Data collection initiatives - Integration in regulatory and supervisory frameworks - Scenario analysis - Capacity building

NGFS Conceptual Framework - a pivotal step in identifying, assessing, and managing nature-related financial risks. Delve into the interconnected world of economic prosperity, biodiversity, and stability. This Framework is a strategic guide to aligning financial systems with nature's well-being. Learn more: https://lnkd.in/eKSBFD7q #NGFSFramework #NatureRiskManagement #FinancialResilience #EconomicSustainability #BiodiversityProtection #NatureInFinance #SustainableFinance #NGFSInsights #FinancialStability #EnvironmentalRiskManagement

Join us for our upcoming #EYFinancialServices webcast exploring #Biodiversity. Learn how maintaining biodiversity can be beneficial to your financial strategy. Register now. #SustainableFinance

#Nature and biodiversity risk is a global concern, impacting financial institutions worldwide. Discover how an Asia-based Financial Institution is taking a #NaturePositive approach with their Nature-related Financial Disclosure Report, in alignment with the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD). Learn how they are assessing the nature-related impacts and dependencies of their investment assets and assets under operations. Read the full case study now: https://okt.to/s1A3H2 #TNFD

'Tell me and I'll forget, teach me and I'll remember, involve me and I'll learn.' In line with the famous words of Benjamin Franklin we launched today during COP28 UAE a new paper that summarizes the findings of 20 financial institutions from 11 countries across 4 continents of their 2nd pilot testing phase with United Nations Environment Programme Finance Initiative (UNEP FI) of the Taskforce on Nature-related Financial Disclosures (TNFD) (beta framework). Some quick findings: 🌲 According to an in-pilot survey results, only 30% currently report on nature-related risks internally. But over the next 12 months, however, 70% of respondents plan to start doing so. 🌵 Strong alignment across sustainability reporting frameworks will be key in helping financial institutions make more informed decisions related to investment, credit, and insurance underwriting. 🌳 The assessment of nature-related financial risks requires models and scenarios that capture the complex interlinkages between nature, the economy, and the financial sector. Jessica Smith David Carlin Gabriela Hermosilla Rhea Kochar Katy Baker Liang Qian Maheen Arshad Lea Lorkowski Bayarlkham Byambaa Thomas Viegas Emily McKenzie Tony Goldner Camille Maclet

Nature is declining faster than at any time in human history, and we don’t fully understand the impact of biodiversity loss on our society and economies. In September, the Taskforce on Nature-related Financial Disclosures released recommendations to address the issue. Hymans Robertson's briefing outlines the TNFD framework for institutional investors. #Nature #BiodiversityLoss #TNFD #PensionsforPurpose https://ow.ly/RuOJ50Q3S2x

Check out these two big announcements on nature-based frameworks from this year's #WorldEconomicForum meeting reported by Reuters: 1) There are 320 early adopters of the Taskforce on Nature-related Financial Disclosures (TNFD) - a framework for businesses and financial institutions designed to focus funding on mitigating nature-related risks and restoring damaged ecosystems. 2) 17 companies are working on a pilot to develop science-based targets for nature through the Science Based Targets Network (SBTN) Get the full scoop here: https://lnkd.in/euag522f #NBS #ConservationFinance #naturepositive #conservation

🌎 This year, the annual UN campaign is focuses on #GenerationRestoration, encouraging awareness around desertification, land restoration and drought resilience. 🌿 To align with this goal and to preserve our planet’s biodiversity by limiting our impacts on the environment, the Taskforce on Nature-related Financial Disclosures (TNFD) has come into force. The initiative addresses the nature-related dependencies of businesses and finance. TNFD have developed an innovative set of disclosure recommendations for organisations trying to report and act on the ever-evolving dependencies of nature. Breaking down the full range of impacts, risks and opportunities. The recommendations provide guidance and enable businesses and finance to integrate nature into their decision making; https://hubs.la/Q02zQGhL0 Understanding where and how your products are created is key, reporting on the your supplier locations helps to migiate risks and impacts. Wherever you are on your journey to transparency, traceability and compliance, segura can help, if you'd like to talk to us in more detail please do get in touch; https://hubs.la/Q02zQy8n0