Nature-related Risk

Nature-related risks are financial risks arising from an organisation's dependencies and impacts on nature. Physical risks include ecosystem degradation, pollinator decline, water scarcity, and soil erosion. Transition risks include stricter environmental regulation, shifts in consumer preferences, and litigation. The TNFD framework and SBTN (Science Based Targets for Nature) provide assessment methodologies. Over half of global GDP ($44 trillion) is moderately or highly dependent on nature according to the World Economic Forum.