With climate and Covid at the top of the agenda, there is a new risk on the horizon

Financial institutions are rushing to meet investor expectations on how they account for climate-related financial risks as Covid strains their financial strengthA recent UK government-commissioned report brings a new issue onto the horizon of systemic risks to financial stability – biodiversityJust as the climate grew from an issue of concern to governments to a major financial stability risk, biodiversity could also quickly become a major issue for investors

With Covid and climate change leading the global agenda, it may be easy for the financial sector to overlook the weighty Dasgupta Review on the Economics of Biodiversity. However, it could be incredibly consequential for financial markets because of how interlinked the topic is with the other two global crises, and...