The arguments for considering environmental degradation as a risk to the economy, finances and society as a whole are becoming increasingly strong.
The Global Assessment published by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) provided clear indicators of the loss of nature and the decline of ecosystem services - worth hundreds of trillions of dollars - that are the basic building blocks of the global economy, from water to energy, food and carbon sequestration. This decline in ecosystem services is all the more important as climate-related risks to the economy and finances become a growing problem: In organizations ranging from central banks to individual companies, climate-related risks have quickly become a management issue.
Climate-related risks and natural risks are not separate entities; the loss of nature reduces climate resilience, and climate change exacerbates the drivers of nature loss.
However, action on natural hazards is fragmented, due in part to a number of competing concepts and frameworks for understanding the financial materiality of nature and its services. This report provides a synthesis framework for natural hazards, bringing together work from over 70 sources. WWF builds on years of research by environmental economists, corporate risk managers and climate scientists, and on the momentum generated by the Task Force on Climate-related Financial Disclosures (TCFD).