This paper contributes to an emerging literature aimed at uncovering the linkages between biodiversity loss and financial instability, by exploring biodiversity-related financial risks (BRFR) in France. It builds on previous studies and proposes an analytical framework to understand BRFR, emphasizing the complexity involved and the limited substitutability of natural capital.
The paper provides quantitative estimates of dependencies and impacts of the French financial system on biodiversity. It finds that 42% of the value of securities held by French financial institutions comes from issuers that are highly or very highly dependent on one or more ecosystem services. It also finds that the accumulated terrestrial biodiversity footprint of these securities is comparable to the loss of at least 130,000 km² of “pristine” nature, which corresponds to the complete artificialization of 24% of the area of metropolitan France.