“Private sector investment is urgently needed if we hope to reach the UK’s nature goals this decade. The market infrastructure is being put in place to enable the flow of private sector capital into nature recovery and nature-based solutions, but there is still much to be done. The support of the UK financial sector will be critical, in addition to the support of the broader UK private sector, and the GFI is delighted by the enthusiasm and leadership of those joining this new Group.”

“A resilient and healthy natural environment is crucial to our economy, which is we are taking urgent action to reverse biodiversity loss and restore nature through our world-leading Environment Act. The private sector has a vital role to play and we are pleased to support this project, which helps UK companies and investors to understand the need to integrate nature into their decision-making processes.”

“The health of the economy and the health of our natural environment are inextricably linked; we cannot have one without the other, as the world-leading Dasgupta Review made clear. This work quantifying nature-related financial risks is an important next step in sustainable economic growth.”

“The financial system’s exposure to declines in nature – whether deterioration of air, water or soil quality, deforestation or the depletion of fish stocks – is clear. But establishing nature-related financial risks is complex and unprecedented. This work – to quantify the cost of nature-related financial risks to the UK – seeks to fill that gap. The Bank looks forward to seeing the project’s findings later this year.”

“As the increasing effects of climate change and negative practices degrade our natural systems, it is critical we understand and mitigate financial risks to UK banks and the economy. Complementary to and building on the work of the Taskforce on Nature-related Financial Disclosures, this analysis will help shed light on the reality that our economic system is dependent on nature.”

“The risks of climate change and biodiversity loss to our economy are vastly undervalued in global financial markets today. As a result, finance is flowing in the wrong direction – toward activities that, for example, drive deforestation and pollution – putting nature, people and livelihoods at risk. Through this research, and by valuing these risks properly within the financial decisions of banks, pensions funds and insurers, we can not only avoid these irreversible impacts but also begin to mobilise the billions of pounds of financial flows needed to protect and restore biodiversity and our natural environment in the UK and globally”

“As co-developers of the ENCORE tool, we are excited to be able to apply this knowledge base to the UK economy, to help businesses, financial institutions and policymakers understand their dependencies on nature. It is vital that nature-related dependencies and impacts are transparently assessed and valued. This will provide critical information for business and the financial sector to integrate nature in their decisions for longer-term stability and resilience. ”

“The degradation of our natural environment causes impacts, such as food system disruption from extreme weather and animal-borne disease, that may well produce considerable material risks to financial stability. Understanding these complex environmental risks, which operate through a myriad of secondary effects and are becoming more frequent over time, is critically important and so this is a very timely and exciting project.”