FSB releases stocktake on nature-related financial risks
On 18 July, the Financial Stability Board (FSB) published a comprehensive report on nature-related financial risks, detailing supervisory and regulatory approaches. This report responds to a February 2024 request from the G20 Finance Ministers and Central Bank Governors to examine the implications of nature-related risks such as biodiversity loss and nature degradation.
The stocktake summarises current and planned initiatives, highlighting the challenges authorities face in identifying, assessing, and managing these risks. It also includes case studies from international organisations like the Network for Greening the Financial System (NGFS), World Bank, Organisation for Economic Co-operation and Development (OECD), Taskforce on Nature-related Financial Disclosures (TNFD), and De Nederlandsche Bank (DNB).
This report underscores the growing recognition of nature-related risks in the financial sector, emphasising the need for robust regulatory and supervisory frameworks. As nature-related risks become more pertinent, the FSB’s insights contribute to ongoing discussions on the relevance of climate and sustainability aspects in financial reporting.
For a deeper dive into the report and its findings, read the full stocktake on nature-related risks here.
