A recently published report Assessing the Materiality of Nature-Related Financial Risks for the UK estimates that nature degradation could result in a 12% loss to UK GDP, larger than the UK GDP estimated impacts of the 2008 financial crisis (5%) and COVID-19 pandemic (11%). The report was commissioned by the Green Finance Institute and led by Dr Nicola Ranger with partners from the University of Reading, the UN Environment Programme World Conservation Monitoring Centre (UNEP-WCMC), and the National Institute of Economic and Social Research (NIESR) and it has received great media coverage (including: Reuters, Forbes, Bloomberg and The Guardian).

Co-author, Dr Jimena Alvarez, Lead of Greening Finance for Nature at the Environmental Change Institute and Lillian Golman Junior Research Fellow at Regent’s Park College added: “The financial sector has a critical role to play in achieving a nature positive future. Our research shows that it would be in their best interest to do so given the macroeconomic criticality of nature-related financial risks. A paradigm shift is needed which brings nature at the heart and centre of financial risk assessment. Building capacity to assess and manage nature-related financial risks – including leveraging on data and analytics like the ones included in this report, integrating nature into transition plans, and supporting clients on their transitions are some ways in which financial institutions can move forward.”