Integrating natural capital in risk assessments

The report, ‘Integrating Natural Capital in Risk Assessments’ is a step-by-step guide to help financial institutions conduct a rapid natural capital risk assessment.

The guide helps banks to better understand how environmental change such as ocean pollution or deforestation may affect their portfolios.

The report guides users through two processes:

• Rapid Natural Capital Risk Assessment, which allows an institution to quickly identify the areas of highest natural capital risk.
• Sector/Asset Analysis, which uses location-specific environmental data to assess the likelihood and likely impact of disruption that businesses in their portfolios face due to environmental change. This could notably help financial institutions in their climate scenario analyses as recommended by the TCFD.