Climate Risk Blake Goud Climate Risk Blake Goud

Emerging Market Banks Are Highly Vulnerable To Nature Risk

  • Financial institutions in emerging & developing markets have 45-55% of their financing assets exposed to at least one ecosystem service risk

  • Nature risks are often linked with climate risks, which has raised regulatory concerns about their impact on financial stability risks, as well as microprudential risks that banks should consider

  • Because nature risks are so embedded throughout global supply chains, they may attract capital to mitigate the risks that have been more limited in response to climate change, and banks will need to understand the sources of their nature & climate risks

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