The Climate-Nature Nexus: An investor guide to expanding from climate- to nature-data

There is an urgent need for the finance sector to account for nature-related risks in decisions, building on progress in assessing and managing climate-related risks. This can help ensure portfolios are resilient to changes in the state of nature, thereby potentially reducing their volatility. “Nature-related risks” are the risks to an organisa- tion from links between its activities and nature. This includes shorter-term financial risks as well as longer-term risks stemming from an organisation’s impacts and dependencies on nature. While challenges remain in accessing ideal data, there are already relevant resources for financial institutions to use, including data currently used for assessments of climate risk. This investor guide presents steps that financial institutions can follow to use existing tools and datasets to screen investments for exposure to nature-related risks.