With images of plastics washed up on shores all around the world, it is becoming increasingly evident that the way we treat our environment and the natural capital it provides may be coming back to bite us.

The increasing pressure being placed on the environment by growing populations and rising consumption levels threatens its ability to provide the goods and services which ultimately underpin all economic activities. This in turn produces a risk to businesses and those who invest in them. Even the many businesses that do not depend on nature to provide inputs to production may still rely on nature to provide valuable services such as water filtration, pest and disease control, or protection from flooding and landslides.

 

Posted by Ashleigh Lezard on 22nd May 2018 at 12:00am

Category: News, Insight


AERM_LOGO_HORIZ_COLOUR

Are you interested in how your financial institution is exposed to natural capital risk and how businesses depend on nature?

Have you thought about the risk associated with disruption to a business or investment from an interruption to the flow of goods or services provided by nature?

Here you can view a webinar outlining the findings of the first phase of the Advancing Environmental Risk Management (AERM) project.

 

Posted by Ashleigh Lezard on 10th May 2018 at 12:00am

Category: News, Events, Insight


According to the capitals framework, there are five types of capital that enable our society and economy. Human and social capital enable productive and organized societies. Manufactured capital enables production processes, and financial capital allows for trade and ownership. Enabling all these other capitals is natural capital – the stock or flow of energy and material that produces goods and services.

Posted by Ashleigh Lezard on 22nd April 2018 at 12:00am

Category: News, Insight


Andrew W. Mitchell, Founder of Global Canopy

Forty years ago this year, I stood on the summit of the second largest mountain in Borneo and looked down on the far horizon across an unbroken canopy of thick green rainforest. Today, that view is still green, but it is the green of palm oil plantations. The conversion of natural capital, like rainforests, for agriculture has been unprecedented in recent decades. It’s often fuelled by financial capital from international markets, largely blind to the destruction of nature.

Posted by Ashleigh Lezard on 21st March 2018 at 12:00am

Category: News, Insight


Earlier this year, the Task Force on Climate Related Financial Disclosures (TCFD) firmly acknowledged that climate change is a material risk to the performance of companies and a systemic risk to the financial sector. The recommendations by the group, which may well form the basis of regulation for financial institutions in many G20 countries, identify a series of climate-related risks, including physical risks, which are considered to have material impact on financial performance. It saddens me that this is now the standard business case for environmental risk management. The TCFD is not very enlightened when it comes to ecosystem degradation, focusing mainly on climate adaptation costs. In the future I would prefer science-based ecosystem risk based business case, as this can steer people in the wrong direction (for us).

 

Posted by Stuart Singleton-White on 27th November 2017 at 12:00am

Category: News, Insight