Recently, Richard Peers from ResponsibleRisk, who served as a keynote speaker at this year’s Sustainable Finance Live conference, engaged in a discussion with the director of nature programs at the Green Finance Institute (GFI) regarding nature-related financial risks in the UK.
Their conversation centered around research published by the GFI, which highlights the potential consequences of environmental degradation on economic progress, predicting a possible reduction in the UK’s GDP by as much as 12%. Peers elaborated on the data-gathering process for the report, which assesses various macro-level scenarios concerning nature-related risks.
“The financial sector has significant backing, but it could benefit from stronger guidance from the Central Bank on their approach to nature-related issues. Our findings indicate that chronic nature risk poses impacts comparable to chronic climate risk,” Peers remarked.
He continued, advocating for companies to move beyond concerns over potential backlash from accusations of greenwashing or greenhushing by actively presenting their transition plans. A lack of impetus for companies to do so could hinder future progress.
The degradation of natural environments is negatively influencing the portfolios of UK banks, with the research indicating that between 8% and 53% of the largest seven UK banks are at risk from nature-related transitions.
Dr. Nicola Ranger from the GFI is set to participate in a pivotal panel discussion at the Sustainable Finance Live event, addressing how financial institutions can leverage GFI proposals to embed sustainable practices regarding natural capital throughout their transactions.
The annual Sustainable Finance Live conference will take place at Events@No6 on Tuesday, October 8. The event will feature various panel sessions aligned with the main theme for this year: “Natural Capital: The Year of the Numbers.” Experts will come together to explore the intricacies of natural capital transactions and devise strategies to address challenges that currently limit its potential.
For more information and registration for Sustainable Finance Live 2024, click here.