Loss of biodiversity and ecosystems harbours risks for financial institutions

Biodiversity and intact ecosystems are necessary prerequisites and beacons of hope for climate protection - this was emphasised time and again at last year's UN climate conferences. However, the loss of biodiversity is currently progressing at a rapid pace, which not only has an impact on our planet and human livelihoods, but also on the global economy. 

The statement from the World Economic Forum's Global Risk Report 2024 is unequivocal: the risk of biodiversity loss and ecosystem collapse will increase sharply and continuously over the next few years and will be one of the three most dangerous risks for the global economy by 2034 - including for banks and other financial organisations.

Driven by these developments, political measures for nature and species conservation are increasing. As a result, it is to be expected that the corresponding regulatory requirements for companies in general and financial institutions will continue to increase. In November and December 2023 alone, the ECB published two publications on the topic of biodiversity, which outline approaches and methods for measuring and operationalising biodiversity risks.

In order to be able to assess risk exposure as accurately as possible, the disclosure of biodiversity-related information and raw data by the bank's individual customers will be an essential prerequisite in future. In addition to their direct operations, banks will also be required to include supply chains in their risk assessment.

Our whitepaper on the assessment of risks from the loss of biodiversity and ecosystems for financial institutions analyses the current market situation and provides an overview of the regulatory requirements of the European Central Bank and the European Banking Authority (EBA). You will also find information on methods that help financial institutions to understand and integrate biodiversity risks into their risk management and we will introduce you to our support services.

Download our whitepaper now and learn how to assess and manage biodiversity risks.