Biodiversity and Financial Stability

Many drivers of climate change, such as land-use change and deforestation, contribute to the degradation of the natural environment. A growing number of central banks and financial supervisors have recognised the need to extend their focus from climate change to the broader challenges posed by environment-related risks. Building greater understanding of the impacts and dependencies of the financial system on the natural environment is an emerging priority we are working to address.

To tackle these challenges and propose recommendations for action and further inquiry, INSPIRE and the NGFS joined forces in April 2021 to launch the Joint Study Group on Biodiversity and Financial Stability.

The goal of this research collaboration is to establish an evidence-based approach to help central banks and financial supervisors fulfil their mandates in the face of financial risks stemming from biodiversity loss.

Frank Elderson, Chair of the NGFS and member of the ECB’s Executive Board.
“Companies are highly dependent on the services that ecosystems provide, but may at the same time have a harmful impact on the environment. The financial risks that stem from a loss in biodiversity are a serious threat to the financial sector that urgently require better understanding by policy makers and regulators to which the new NGFS/INSPIRE Study Group will provide an important contribution”.

Study Group Members

Co-led by Dr Ma Jun (Chair of NGFS Workstream on Research and Special Advisor to the Governor of the People’s Bank of China) and Professor Nick Robins (INSPIRE) under the management of Dr Simon Dikau (INSPIRE), the Study Group draws upon the expertise of NGFS members and observers, academics and non-government organizations from across the globe:

Asian Development Bank
Banco Central de Chile
Banco Central do Brasil
Banco de España
Banco de México
Bank Al-Maghrib
Bank Negara Malaysia
Bank of England
Bank of Greece
Banque de France
Central Bank of Costa Rica
De Nederlandsche Bank
European Central Bank
Financial Regulatory Authority of Egypt
Hong Kong Monetary Authority
International Monetary Fund
Japan Financial Services Agency
Monetary Authority of Singapore
OECD
People’s Bank of China
Sustainable Insurance Forum
World Bank
Jakob Thoma - 2DII Clément Feger - AgroParisTech and University of Montpellier Daniel Schydlowsky - Boston University Global Development Policy Center Nina Seega - Cambridge Institute for Sustainability Leadership Chiara Colesanti Senni - Council for Economic Policies Pierre Monnin - Council for Economic Policies John Tobin - Cornell University Ricardo Bayon - Encourage Capital Dirk Schoenmaker - Erasmus University Rotterdam
Meijia Zhuan - Greenovation Hub
Yunwen Bei - Greenovation Hub
Rita Pandey
Elena Almeida - London School of Economics
Natasha Kunesch - London School of Economics consultant
Mark Nicholls - London School of Economics consultant
Xi Ji - Peking University
Odile Conchou - Secretariat of the Convention on Biological Diversity
Katie Leach - Share Action Guilherme Teixeira - SITAWI Finance for Good Ulrich Volz - SOAS, University of London
Pina Saphira - UNEP-WCMC
Rodrigo Cassola - UNEP-WCMC
Jessica Dempsey - University of British Columbia Hugues Chenet - University College London
Josh Ryan-Collins - University College London
Katie Kedward - University College London Carlos Klink - University of Brasília Raimon Ripoll Bosch - Wageningen University
Sha Song - World Economic Forum
Chunquan Zhu - World Economic Forum
Margaret Kuhlow - WWF
Adrian Fenton - WWF Singapore
Maud Abdelli - WWF Switzerland
Pablo Pacheco - WWF US