Legal & Regulatory News

Network for Greening the Financial System publishes interim report on biodiversity and financial stability

On 8 October 2021, the Network for Greening the Financial System (NGFS) released an interim report indicating that the effects of biodiversity loss could have significant economic and financial implications. These implications stem from the physical risks derived from reductions in biodiversity and damage to ecosystems.

The NGFS report provides recommendations for central banks and financial supervisors, including recommendations to:

• establish the capacity to address biodiversity-related economic and financial risks, including becoming more familiar with existing biodiversity economic models which capture the risks for financial entities;
• assess the dependencies and impacts of regulated financial institutions on ecosystems services and biodiversity; and
• inform the financial institutions that they supervise and other economic agents about the importance of understanding these risks.

Click here to access the NGFS interim report and a complete list of recommendations.