Avery and Peers discussed research released by the GFI, outlining how deterioration of the natural environment could slow economic growth and lower the UK’s GDP by up to 12%. Avery describes the process of recovering the data for the report, which evaluates various nature-related risk scenarios at a macro-level.

“The financial sector has a lot of support, but it would have more support if the Central Bank was clearer about how they are looking at nature. Our research found that chronic nature risk is just as detrimental as chronic climate risk.”

Avery continued by arguing companies need to step away from fears of a backlash around greenwashing or greenhushing, and show up with transition plans. The lack of pressure on companies to do so is not a positive outlook for the future.

There is a negative impact on UK bank portfolios as nature continues to degrade. The report found that 8-53% of the UK’s 7 largest banks are exposed to nature-related transition risks.

Dr. Nicola Ranger from the GFI will speak in a key panel at the Sustainable Finance Live: ‘How can financial institutions build on the proposals from the GFI to both enhance and ensure the sustainability of natural capital is embedded in the transaction journey for their customers?’

Finextra’s annual Sustainable Finance Live conference will take place at Events@No6 on Tuesday 8 October. The event will consist of multiple panel sessions exploring this year’s main theme: Natural Capital: The year of the numbers. In the discussions, experts will gather together and examine the process of a natural capital transaction, and what solutions can be employed to overcome challenges limiting the potential of natural capital.

Learn more about and register for Sustainable Finance Live 2024 here.