Exploring the Links Between Biodiversity Loss and Financial Stability

Central banks and financial supervisors must take a systematic approach to biodiversity, according to this post from the Grantham Institute at the London School of Economics. The article outlines the role for a new study group launched by the Network for Greening the Financial System and the Inspire research community.

While the finance and biodiversity agenda has been relatively underdeveloped to date, this is beginning to change, according to the post. A growing number of central banks and supervisors recognise the need to extend their focus from climate change to the challenges of nature-related risks and the conservation of biodiversity, the authors add.

The post says that the goal of the new study group is to establish an evidence-based approach to how central banks and supervisors could fulfil their mandates in the context of biodiversity loss. It will propose recommendations for action and further inquiry in the next year.