The Economic Opportunity of Natural Capital can also Raise the Risks for Financial Institutions Who Ignore It

Climate action suffers from a ‘tragedy of the horizon’, where incentives for action today are poorly aligned with what is needed for the futureThe long-term economic stakes are approaching catastrophic levels, with a 90% GDP drop projected for India by 2100Quantifying the near-term opportunity from protecting the sources of ecosystem services, which creates significant near-term economic growth, helps show the financial materiality of natural capital (mis)management

If a choice we make today might have a catastrophic economic impact in five years’ time would we make a different choice? What if the catastrophe were pushed five years further back? Or ten years? Or fifty? This is the ‘tragedy of the horizon’ used by former Bank of England governor Mark Carney t...