The erosion of UK and global natural capital generates significant and long-term risks to society and the UK economy and financial sector. [...] Macroeconomic modelling to gauge the potential impacts on UK prosperity and resilience, involving close collaboration between the University of Oxford and the National Institute of Economic and Social Research (NIESR). [...] The importance of a global approach Around half of UK nature-related risks come from overseas, through supply chains and financial exposures, pointing toward the importance of working internationally to close the gaps in disclosures and risk management. [...] Looking across the portfolios of the seven largest UK banks, the analyses indicate possible adjustments in the valuations of domestic holdings (excluding finance) of up to 4 – 5 per cent over the coming decade from physical nature-related risks. [...] For government, the materiality of nature-related risks demonstrated in this study adds additional urgency to put in place the mechanisms, domestically and globally, to meet the goals and targets of the Kunming-Montreal Global Biodiversity Framework (GBF), as well as domestic policies such as the Environmental Improvement Plan (DEFRA, 2023).
- Pages
- 7
- Published in
- United Kingdom
Table of Contents
- The urgency around assessing nature-related financial risks 1
- Nature risks are macro critical to the UK economy and financial sector 2
- -14 2
- -12 2
- -10 2
- 2024 2026 2028 2030 2032 2034 2036 2038 2040 2
- Percentage difference from baseline 2
- INTERNATIONAL HEALTH DOMESTIC 2
- Nature doubles climate losses 3
- The importance of a global approach 5
- A call for action 6
- Recommendations 6
