As markets begin to understand and appreciate the risks and opportunities associated with climate change, there is a growing recognition that these are connected to wider natural capital issues. This includes risks associated with water stress and the loss of biodiversity, amongst others.
The risks from loss of nature have the potential to disrupt both society and the financial system, with more than 50% of global gross domestic product being moderately or highly dependent on nature and the goods and services it provides.
Disclosure on biodiversity is currently far less prevalent than other environmental topics, most notably climate. However, biodiversity-related corporate reporting is a fast-moving, developing area, and there is ongoing work to create harmonisation, particularly related to measurement and disclosure. Organisations are now being asked to assess, manage and disclose their impacts and dependencies on biodiversity, and wider natural capital elements, so that investors can appropriately value assets and allocate capital towards more sustainable practices.Enrol in this course to learn more about biodiversity-related financial disclosure.