Nature risk

Embedding nature risk into finance

We build practical frameworks and tools that embed nature into financial systems, supervision, and high-impact industries.

The challenge

Across the global economy, environmental degradation is rapidly translating into financial volatility. Biodiversity loss, water stress, and ecosystem degradation are no longer distant sustainability concerns — they are material risks reshaping markets, supply chains, and economic stability.

Integrating nature risk into finance is fast becoming a resilience imperative for financial institutions, policymakers, and governments responsible for long-term value creation. 

The tools to act are already emerging. Initiatives like the Taskforce on Nature-related Financial Disclosures and new applications of AI and remote sensing are helping financial actors measure nature-related risks with growing precision. The challenge is no longer awareness — it’s implementation.

Our approach

NatureFinance works to close the implementation gap around nature risk by developing practical tools, building capacity, and driving uptake across the financial system.

Through our tool, NatureAlign, we help financial actors evaluate their financial flows against nature-related dependencies and impacts while aligning with emerging disclosure frameworks.

We collaborate with central banks, financial supervisors, and researchers to integrate nature into climate risk models, policies, and operations. We are also examining nature risks in high-impact sectors such as technology and AI, identifying and addressing key governance gaps.

NatureAlign

NatureAlign is a free assessment tool for financial actors that uses data to assess how their investments, loans, expenditure, or project finance interact with nature. It aligns with emerging regulations and disclosure frameworks, helping users identify portfolio hotspots, report on nature, and prioritise action towards a nature-positive transition.

Learn more

Advancing resilient and sustainable AI governance

NatureFinance is developing guidance for the technology sector to increase transparency on nature-related risks. This work builds on our recent report that examines the relationship between AI hyperscale data centres and water resources, highlighting growing sustainability challenges from energy and water use in the rapidly expanding AI sector.

Read the latest report: Navigating AI’s thirst in a water-scarce world: A governance agenda for AI and the environment 

Helping central banks and financial supervisors embed nature into financial decisions

We collaborate with central banks and financial supervisors to integrate nature and climate risks into financial policies and operations. Through partnerships with institutions like the European Central Bank, we develop science-based scenarios and policy tools to strengthen risk assessments, inform financial supervision, and enhance the resilience of financial systems.

Read the latest report: Climate-nature scenario development for financial risk assessment: Presentation of final results

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