Regulations are evolving in favor of biodiversity
The international legislative framework, particularly in Europe, encourages companies to question their challenges in terms of biodiversity. These reflections feed into the financing and investment decisions of financial institutions which, at the same time, refine their convictions on the risks and opportunities that result from them.
Many economic actors, and therefore those who finance them, are dependent on biodiversity, even though their activities sometimes have a negative impact on nature. This dependence on ecosystem services introduces a risk to their ability to repay a loan or influences their stock price. The ECB has calculated that about 72% of euro area firms are highly dependent on ecosystem services and that these account for almost 75% of all corporate lending by European banks. The Banque de France, for its part, estimated that 42% of the shares and corporate bonds held by French financial institutions were highly or very strongly dependent on at least one ecosystem service. To ensure the financial stability of economies, financial institutions are therefore beginning to have very specific expectations about the proper management of issues related to biodiversity issues. But if the management of risks related to climate change is complicated to understand, that of risks related to nature is even more so, given the complexity of the subject. […] To read the full article, click on the link below.
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