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🔥 This fireside chat was an absolute highlight on the first day of the #GRT2024. Our research found that central banks and supervisors, on a global scale, are starting to acknowledge the necessity of tackling nature-related risks as part of their prudential mandate.  🌍 Twenty-nine jurisdictions, totaling more than EUR 75 trillion of banking assets, have already made initial steps reflecting nature-related considerations in their prudential frameworks. Regions with high ambitions include the EU, Brazil, and several Southeast Asian countries, including Singapore, Malaysia and the Philippines. 🔗 It is important to promote coherence and synergies between prudential regulation and the wider policy landscape for banks; considerations for nature-related policy interventions to focus on include:  1. Promoting accessibility and availability of reliable and decision-useful nature data 2. Mobilizing resources and expertise towards advanced risk measurement modelling 3. Addressing externalities to reflect harmful environmental impacts better 🙏 It's not just about the report but also about the collaborative effort. This is a significant step forward, made possible through our partnership with Usher, E. Kirsten Schuijt Maud ABDELLI Christine J. Wanjiku Mwangi, CFA Aaron Vermeulen Elisa VACHERAND Nicolas P. Elizabeth Aceituno Sem Houben Laura Canas da Costa Pina Saphira Siti Kholifatul Rizkiah

Bringing #nature to the heart of #finance: fireside chat at the UNEP FI Global Roundtable with UNEP FI Head Eric Usher (Usher, E.) and WWF International Director General Kirsten Schuijt. With a 73% decline in wildlife and biodiversity risks increasing, Kirsten and Eric outline the most pressing issues for financial institutions and regulators to address. They also discuss a new joint UNEP FI and WWF report, Navigating Nature-related Regulations for #Banks: Mapping the #Policy Landscape. The first-of-its-kind publication provides a comprehensive overview for banks to understand the latest regulatory developments on nature-related issues and for government policymakers to consider ways to promote coherent and effective nature-related policies for the banking sector. Download the report, and register for a 16 January 2025 webinar with UNEP FI, WWF, and central bank representatives: bit.ly/4gvzOYV #GRT2024 Watch online here: www.unepfi.org/grt-live

📢 New Report Alert!    The FSB has released the "Stocktake on Nature-related Risks," exploring how financial authorities are addressing the financial risks posed by nature degradation and biodiversity loss.    The report, requested by the G20 in February 2024, highlights current and upcoming regulatory and supervisory initiatives, and the key challenges in managing these risks. It features case studies from the NGFS, World Bank, OECD, TNFD, and DNB.    Dive into the insights and see how nature-related risks are shaping the financial landscape! https://lnkd.in/eWj2R3X2 #FinancialRisk #Biodiversity #Sustainability #Regulation #FSB #ClimateFinance #GreenFinance #ESG #NaturePositive #BiodiversityLoss #EnvironmentalRisk #SustainableFinance 

From the conceptual to the applied. Last week, the Network for Greening the Financial System (NGFS) released two key complementary reports on #nature-related risk. Both are essential reading for both public and private-sector practitioners. The first report is the final version of the #NGFS Conceptual Framework for nature-related financial risks, which aims to guide policies and action by central banks and financial supervisors. The report builds on the beta version released last September, in part through includeing two illustrative cases (forest and freshwater ecosystems), which demonstrate how the framework can be applied in practice. The second report outlines the key emerging trends related to nature-related #litigation, including cases concerning biodiversity loss, deforestation, ocean degradation, carbon sinks and plastic pollution, and explores the potential relevance for central banks, supervisors and the financial system. It argues that nature-related legal actions will likely evolve and grow, taking inspiration from successful #climate-related litigation cases, and benefiting from an increasing awareness of the nature crisis. A huge congratulations to my former colleagues (and pioneers!) who continue to further the community’s awareness and understanding of these fundamental issues, and work tirelessly to equip those who can act, with the necessary means to do so. First report: https://lnkd.in/eF9qUZYy Second report: https://lnkd.in/e39WxWTx Sabine Mauderer Emmanuelle Assouan Marc Reinke Prof Dr Chiara Zilioli Jean Boissinot Sjoerd van der Zwaag Serafin Martinez Jaramillo Romain Svartzman Jasper Chan Marie Gabet Isabelle Tiems Antje Hendricks carlijn ginther Géraldine Ang Hugh Miller Paolo Krischak Emily McKenzie Alessandra Melis Maud ABDELLI Adonai Herrera-Martinez Anoud Allouzi Dr Nicola Ranger Dr Nina Seega Jeanne Stampe Simon Dikau

A report by #G20’s financial watchdog found that due to insufficient data, G20 financial regulators are overlooking nature-related risks such as #biodiversity loss and #deforestation, and are focusing largely on climate risks. However, the Financial Stability Board (FSB) report highlights that losses in nature can cause credit losses, defaults, and abrupt price corrections, posing financial risks to banks. Physical risks stem from nature's degradation but can impact activities in key sectors such as food production. The FSB calls for improved data and measures to assess these risks.

⛵ The wind of change. Research by the United Nations Environment Programme Finance Initiative (UNEP FI) and WWF's Greening Financial Regulation Initiative found that a growing number of jurisdictions—29 and counting—have started incorporating nature-related considerations into their prudential frameworks, covering more than EUR 75 trillion in banking assets. This represents a significant shift in how financial institutions are expected to manage risk, particularly as pressing environmental challenges such as biodiversity loss and climate change continue to intensify. But as we know, prudential regulation doesn’t exist in isolation—it is part of a broader, interconnected system, much like the elements of a well-charted route at sea. It includes corporate disclosures, taxonomies, due diligence obligations, and more. These elements often work in tandem, and their interactions can be complex—both within jurisdictions and across borders. We are collaborating with members and partners to support and accelerate the financial sector’s efforts in developing innovative strategies that drive progress on nature and biodiversity protection while fostering nature-positive financial flows and enhancing nature-related financial architecture for the benefit of society and the stability of ecosystems and wildlife populations. 📖 Read more in our blog and report via this link - https://lnkd.in/eVkQu75E and our webinar (1000+ registrations): https://lnkd.in/eCc6DXYu Laura Canas da Costa Jessica Smith Elodie Feller Liesel Van Ast Sem Houben Emily R. Dahl Aaron Vermeulen Maud ABDELLI Pina Saphira Jonas Grunder Siti Kholifatul Rizkiah Beata Bienkowska Verena Kraus Gabriela Hermosilla Daniel Bouzas Luis Guilherme Cassaro Rocio Falcones Chiara Magrelli Feng Hu FIONA STEWART Nepomuk Dunz Charlotte Gardes-Landolfini Suhana Alia Sidek, Boris JAROS Katrin Weissenberg Thomas ROBERTET Stefan Gross Elena A. Emily McKenzie Alessandra Melis Adam Ng Lydia Marsden Natacha Postel-Vinay Gillian McCusker, PhD  Lizzie Valdivieso Sharon Brooks & more below 🙏 Thanks for your excellent presentations Marc Reinke Guan Schellekens Katie Lee Sheah Tsan

Sustainability: the win-win game for financial institutions Once upon a time, I was a junior lawyer working with environmental laws and rules on advisory projects, trying to figure out how to incoporate the environmental variable within private sector's strategies, especially, banks' strategies. Grounded on a simple rationale - no natural capital, no economy; the higher the environmental risk appetite, the higher credit risks - a logic conclusion would be that environmental risks (and opportunities) were a relevant topic for the financial system to deal with. Besides, facing an environmental system that lacked enforcement, the flow of capital seemed the perfect tool to induce environmental compliance while reducing credit risk. Bingo! But what was crystal clear to me, was far away from reality. 20+ years later, management and disclosure of environmental, climate and social risks (and opportunities) are a reality within our financial system, thanks to the leadership of the Brazilian Central Bank (Banco Central do Brasil). Raising the bar, the Central Bank has recently published a consultation seeking for market contributions on quantitative data (KPIs and goals) for social, environmental and climate risks and opportunities. For more details, have a look at my new article published by Reset (in Portuguese): https://lnkd.in/dM5ZbTE5  #sustainabledevelopment #sustainabilitymatters #sustainablefinance #sustainableinvesting #sustainabilityreporting #sustainablefuture #lowcarboneconomy #sustainabledevelopmentgoals #bioeconomy #sustainableeconomy #sustainability #circulareconomy #climaterisk #climatechange #climateadaptation #climatefinance #climatechangemitigation #climateaction #climate #climateemergency #climatesolutions #climatetech #climategoals #climatechangeadaptation #climatemitigation

#GreenCentralBanking roundup: 🇩🇪 BaFin calls for less is more approach to SFDR Reforms 🌳 The World Bank breaks ground with reforestation outcome bonds ✅ International Accounting Standards Board (IASB) proposes climate reporting examples And more 👇 GreenCB.co/47PwB2Y

🚀🌿 Exploring the FSB's new Nature-Related Financial Risk Stocktake The Financial Stability Board (FSB) just released a comprehensive stocktake on nature-related financial risks, providing valuable insights for the sustainable finance community. Here are some key points: 1. Diverse Stages of Evaluation: Financial authorities are at various stages of evaluating the relevance of biodiversity loss and other nature-related risks as financial risks. While some have recognized these as material financial risks, others are still monitoring international developments due to data gaps and the need to prioritize climate risks. 2. Data and Modelling Challenges: A major challenge identified is the difficulty in connecting underlying nature risks with financial exposures. There is a significant need for improved data and modelling to translate estimates of financial exposures into tangible measures of financial risk. 3. Regulatory and Supervisory Work: The regulatory and supervisory initiatives related to nature-related financial risks are in the early stages globally. There are diverse approaches across jurisdictions, with some authorities already implementing initiatives to promote firm-level disclosures and capacity-building efforts. 4. Analytical Frameworks: The report categorizes nature-related risks into physical and transition risks, similar to climate-related financial risks. Financial institutions are exposed to these risks through their investments and financing activities, but more work is needed to develop holistic approaches that consider the interdependencies between climate and nature-related financial risks. 5. Capacity Building and International Coordination: The report emphasizes the importance of international cooperation and capacity building to manage nature-related financial risks effectively. Examples include initiatives by the Network for Greening the Financial System (NGFS) and the Taskforce on Nature-related Financial Disclosures (TNFD). #SustainableFinance #NatureRisk #FinancialStability #FSB #Biodiversity #ESG #NatureDisclosure

Matter in the news! Financial institutions face significant risks due to climate change. The recent report by the Financial Stability Board (FSB) highlights the varying approaches global regulators are taking to address nature-related financial risks. Despite the recognised challenges, such as lack of reliable data, hindering comprehensive assessments, there’s a growing appreciation of the need for action. Matter’s Chief Sustainability Analysis Officer, Lise Pretorius, is quoted today in both the Financial Times’ Sustainable Views and the Portfolio Adviser's PA Future. “This report highlights that while regulatory authorities' recognition of nature risk is not uniform, and is in some ways still in its infancy, nature as a financial risk is clearly on the global regulatory and supervisory agenda. Climate and nature are so deeply intertwined that we cannot separate them, and we see the recognition of the work still to be done on data, methods, and scenarios as positive: as with climate, financial authorities play an important role in guiding the development of frameworks and approaches risk assessment. At the same time, firms and financial institutions are in many cases already going beyond regulatory expectations on nature, as we have seen with growing global TNFD adoption. We’re excited to be part of this virtuous circle by contributing to robust, scalable nature data at this critical point in history." The findings of the stocktake will be presented at the upcoming G20 Brasil 2024 meeting of finance ministers and central bank governors. Read the articles right here: https://lnkd.in/dk7kvZkC & https://lnkd.in/d5VWCFSz Discover Matter’s data and Nature Impact & Dependency to understand portfolio and company level dependency and impact on natural capital across dozens of granular themes and risk profiles: https://lnkd.in/eshpBPeB Contact us today to discuss your portfolio’s impact and dependency https://lnkd.in/eESK-Wss #SustainableFinance #ESG #News