New analysis led by the Green Finance Institute, supported by Defra and the Bank of England, and alongside the UN Environment Programme World Conservation Monitoring Centre and the Universities of Oxford and Reading, will estimate the scale of nature-related financial risks to the UK economy for the first time.
In a report to be published later this year, this first-of-its-kind analysis will reveal the materiality of nature-related financial risks and the potential financial impact of biodiversity loss and ecosystem degradation on UK business and financial institutions.
The UK economic system depends on the natural world with three-quarters of UK FTSE All-Share firms ‘highly dependent’ on natural capital and resources, including water and soil. Examples of highly dependent sectors include agriculture, forestry, utilities, and mining, which risk facing economic disruption as nature is continuously depleted. The UK’s stock of natural capital assets (upon which benefits are based) were estimated in 2019 to be worth £1.2 trillion.
Read the full press release from the Green Finance Institute