New Handbook for Nature-related Financial Risks from CISL

The Cambridge Institute for Sustainable Leadership (CISL) has published a risk framework and guide to nature-related financial risks – the Handbook for Nature-related Financial Risks - which has been co-created with University of Cambridge academics and members of CISL’s Investment Leaders Group and Banking Environment Initiative to ensure it is practitioner led and useful to the market.

Building on the Dasgupta Review of the economics of biodiversity, the handbook details how nature loss represents material financial risk by defining key concepts and risk transmission channels, and includes a risk framework empowering financial institutions to start identifying nature-related risks in their portfolios, assets, operations and revenue streams face. In 2021, CISL be working with financial institutions participating in the programme to apply the risk framework and assess specific cases of risk nature-related risk.