GARP's Global Survey of Nature Risk Management at Financial Firms is out! Webcast presented by Jo Paisley and Maxine Nelson provide great details on 'How much more that needs to be done'.
Nature Loss Impacts us directly and our economies, so how well are we measuring, managing and reducing Nature loss across five drivers? And, How are we managing Nature related financial risks?
The survey takes into account sample of 48 firms: 37 banks or building societies; 7 asset managers and 4 insurers. $33 trillion of assets on balance sheets; $19 trillion of assets under management; $2.4 trillion of market capitalization. Firms have answered questions centred around below 6 principles:
Key Takeaways
There is a growing regulatory focus on nature risks.
Nearly half of the boards in our sample have oversight of nature-related risks and opportunities.
C-Level executives are accountable for nature-related risk assessments and management efforts at around two thirds of firms.
Maturity levels are relatively low with respect to firms’ strategic engagement with nature.
Of all the drivers of nature loss, climate change is the most popular area focused on by firms.
Just 17% of firms are using metrics, targets, or limits to assess drivers of nature-related risks.
Availability of data and models are the two highest short-term concerns firms face over the next 5 years.
Nature scenario analysis is not widely used
Open the presentation below from GARP institute.