Banks ‘Largely Blind’ to Portfolio Risk Posed by Nature Loss

Most financial firms aren’t assessing their portfolio exposure to nature-related risks with the same urgency they use to measure climate impacts, a shortcoming that could lead to higher costs, litigation and a hit to reputations, according to a new report.

Only 20% of financial companies measure their exposure to nature-related risk compared to the 85% who calculate their potential vulnerability to climate impacts, according to the report by CDP, which helps companies disclose environmental impact. The analysis was based on disclosures made to the non-profit last year by more than 550 banks, insurers and asset owners representing about $8 trillion in market capitalization. ...