Exploring Natural Capital Opportunities, Risks and Exposure: A practical guide for financial institutions

Published December 2018

The world’s first comprehensive tool linking environmental change with its consequences for the economy has been launched by the Natural Capital Finance Alliance (NCFA). The web-based tool, called ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure), will help global banks, investors and insurance firms assess the risks that environmental degradation, such as the pollution of oceans or destruction of forests, causes for financial institutions.

It is part of the project ‘Advancing Environmental Risk Management’  which builds upon NCFA’s previous work to provide a comprehensive view of the ways in which degradation or destruction of natural capital constitutes a risk to financial institutions. The first output towards including natural resource risks in cost of capital highlighted the fragmented nature of information that financial institutions face when it comes to such risks. This report outlines the main findings of this first phase and provides ‘A practical guide for financial institutions’ to help them understand, assess, and integrate natural capital risk in their operations.

Download the report here.

Find out more about the ENCORE tool here on the NCFA website.

Read the news article about the launch of the tool at UNEP FI’s Global Roundtable 2018.

About NCFA

The Natural Capital Finance Alliance (NCFA) is a finance sector-led initiative, providing expertise, information and tools on material aspects of natural capital for financial institutions. It works to support these institutions in integrating natural capital considerations into their risk management processes and products as well as helping them to discover new opportunities. The NCFA secretariat is run jointly by UNEP FI and Global Canopy.

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