Despite the recent spotlight on sustainable investing, the financial sector is still falling short, say experts. A new report by the World Wide Fund for Nature (WWF) warns that current practices of only integrating climate-related risks and impacts in existing mandates — and not including risks from nature loss — are insufficient to protect the world and its assets.
“The unprecedented rate of biodiversity loss — exacerbated by and contributing to climate change — is undermining key ecosystem services and natural resources on which the economic system depends, fuelling economic vulnerabilities and risks,” reads the WWF report.
Titled “Nature’s next stewards: why central bankers need to take action on biodiversity risk”, the report, launched on July 14, was compiled with contributions from a list of parties. They are: the Institute for Climate Economics (I4CE), Finance For Biodiversity (F4B), Ecofact, Council on Economic Policies (CEP) and International Union for Conservation of Nature (IUCN).