Natural Capital Credit Risk Assessment in Agricultural Lending

Published April 2019

The report, ‘Natural Capital Credit Risk Assessment in Agricultural Lending’ is a new template that enables financial institutions to conduct natural capital credit risk assessment across different agricultural sectors and geographies, taking into account factors such as water availability, use and quality; soil health; biodiversity; energy use and greenhouse gas emissions.

The new sector-specific guide is consistent with the leading international standard for including natural capital in business decision-making, the Natural Capital Protocol and complements the Natural Capital Finance Alliance’s new ENCORE tool and step-by-step guide to incorporating natural capital into bank’s risk management processes.

The approach was developed by Dr Francisco Ascui (Senior Lecturer in Business and Climate Change at the University of Edinburgh Business School) and Theodor Cojoianu (Marie Curie and IRC Fellow at the Michael Smurfit Graduate Business School, University College Dublin) in response to growing demand for better frameworks to assess natural capital risks in key sectors of the economy.

Download the report here.

Find out more about the launch of the ENCORE tool here.