Nature-related financial risks in our own account investments: An exploratory case study and deep dive in electric utilities

The degradation of nature poses significant risks for business, the financial sector and society, both now and in the future. Awareness is growing in the financial sector of the importance of understanding and acting on nature-related financial risks. While further work is still needed on disclosures and data, financial institutions can leverage newly developed nature-risk frameworks to identify, assess and manage their linkages with nature. As this field is new territory, sharing experiences and knowledge is essential for building a collective understanding of nature-related financial risks. In this context, De Nederlandsche Bank (DNB) publishes a case study on an exploratory assessment of nature-related financial risks in its own account investments and a sectoral deep dive into electric utilities using coordinates of company assets. In the process, DNB has piloted the LEAP approach of the Taskforce on Nature-related Financial Disclosures (TNFD).