The unprecedented rate of biodiversity loss – exacerbated by and contributing to climate change – is undermining key ecosystem services and natural resources on which the economic system depends, fueling economic vulnerabilities and risks. Just as central banks have begun to consider climate change risks as falling within their mandates, the transmission of nature-related risks from the real economy to the financial sector should be a major concern for central banks and financial supervisors.
This WWF report provides seven case studies setting out how biodiversity loss creates or contributes to economic impacts that have the potential for financial sector implications. It outlines the case for central banks to consider nature-related financial risks and how they can manage them. The report concludes with a series for recommendations for how central banks can take action on biodiversity risk.