Ecosystem degradation is increasingly disrupting economies and societies worldwide, for example through crop failures, water scarcity, intensifying natural disasters, and the spread of infectious diseases. For banks, insurers, and investors, these impacts translate into physical, transition, and systemic financial risks that directly influence asset valuations, underwriting performance, and the long‑term resilience of clients and portfolios.
Financial institutions are also under growing pressure to align their strategies and reporting with emerging nature‑related risk frameworks and regulatory expectations. Yet many still lack the practical tools, data, and capacity needed to identify, assess, and disclose these risks effectively. UNEP FI helps bridge this gap by working closely with its members and the wider finance sector to strengthen institutional capabilities in managing, assessing, and reporting on nature‑related risks and financial disclosures.
Equipping financial institutions to manage nature risks
UNEP FI’s Risk Centre
UNEP FI’s Risk Centre helps banks and insurers stay ahead of evolving nature‑risk practices and build the capabilities required in an increasingly complex risk landscape.
Designed for financial risk professionals, this centre of excellence provides UNEP FI members with deep‑dive research programmes and practical technical resources to deepen their understanding of how physical nature risks affect portfolios, clients, and business models.
Learn more about the Risk Centre.
Facilitating the adoption of nature-related financial disclosures
UNEP FI is one of the founding members of the Taskforce on Nature-related Financial Disclosures (TNFD) and supports the adoption, implementation and improvement of the TNFD risk management and disclosure framework by financial institutions.
Through initiatives such as the Nature Reporting Preparer Forum, UNEP FI supports banks and insurers in emerging markets in assessing and disclosing nature-related risks and opportunities in line with the TNFD recommendations.
Contact us to get involved.
Exploring natural capital opportunities, risks and exposure with ENCORE
The ENCORE tool, co-developed by UNEP FI, illustrates how economic activities depend on and impact nature across sectors and specific business activities. Financial institutions can use ENCORE to identify nature‑related risks within their lending, underwriting, and investment portfolios, particularly in high‑risk industries. ENCORE also includes a biodiversity module designed to help institutions understand how activities in sectors such as agriculture and mining can align with global biodiversity and nature‑positive goals.