For what it’s Earth — Nature risks and opportunities
- Jennifer Munnings
In 9fin’s latest ESG Educational, we explore the material risks and opportunities nature presents for investors.
This educational begins by highlighting the relationship between climate and nature and the resulting material risks associated with nature loss. We then outline upcoming regulations and discuss nature capital investment opportunities as a way to support nature-positive initiatives.
Nature loss, a thorn in the investor's side
Neglecting nature loss and biodiversity risks exposes companies to material losses as threats of nature degradation pose a $2.7trn annual GDP loss by 2030.
According to the World Economic Forum, over half of the world’s economic output, around $44trn, is moderately or highly dependent on nature and healthy ecosystems.
Investors have faced barriers to understanding the connectivity between nature and business due to the lack of transparency in supply chains, the absence of a single overarching climate-nature disclosure framework, the lack of a clear valuation methodology, and unstandardised biodiversity metrics.