Nature: Central banks and finance, ascend the green agenda

Nature needs to be prioritized by central banks and financial supervisors, according to a report by the World Wide Fund for Nature (WWF) and the Sustainable Finance Lab. The report highlights the growing threat of nature loss to global financial stability and points out that central banks and supervisors must do more to address this issue. While some organizations are beginning to recognize the risks associated with nature loss, concrete policies and actions to manage these risks are still lacking. The report recommends several measures for central banks and supervisors, including taking a precautionary approach, focusing on environmentally damaging activities, and publishing transition plans that link biodiversity loss to climate change. Currently, financial regulations and activities primarily focus on climate change, neglecting biodiversity loss and its implications for communities reliant on nature. The financial sector plays a crucial role in biodiversity protection and can contribute to a transition to a net-zero, nature-positive economy. Central banks and supervisors can use their existing mandates to take a proactive role in building resilience against the risks of biodiversity loss.