24 March: This policy brief calls on central banks and financial supervisors to build and use a dashboard of biodiversity metrics to assess biodiversity risks in terms of both dependencies and impacts. In order for these metrics to become fully operational, they should cover risks for firms and households, account for the risks of tipping points, and address micro and macro dimensions of biodiversity risks – including systemic societal risks. They should furthermore include geographical information to cover the location of economic activities (including the supply chain) and the local state of biodiversity loss. Moreover, these metrics should be able to reflect the vulnerability and resilience of companies and households vis-à-vis biodiversity risks.

Given the rapid development of biodiversity risk metrics and the rise of sustainable finance, central banks and financial supervisors can and should take a leading role in establishing an appropriate institutional framework to further develop these metrics and ensure that they are trustworthy and can be used effectively. Collaboration with various actors in an inclusive and open way is crucial for the success of this endeavour. This process will also support the various institutions in providing the data for the dashboard, contributing to the development of metrics, and building up their own implementation capabilities.