Global survey of nature risk managementat financial firms

Garp Nature Report

May 2024 | Global Institute of Risk Professionals (GARP)

The findings outline how nature loss has a profound impact on the economy and is a source of significant risk for financial institutions.

GARP conducted its first global study of nature-related financial risk management across 48 financial firms to understand how risks and opportunities are managed in today’s economic landscape. The report offers a snapshot of current risk management practices and helps firms prioritize areas for improvement.

Key Takeaways:

  • There is a growing regulatory focus on nature risks, with 31% of firms reporting that their regulators have published formal expectations for nature risk management and another 13% expecting their regulators to do so.
  • Nearly half of the boards in our sample have oversight of nature-related risks and opportunities, with most of the remaining firms working or intending to work on this.
  • Nature risk is relatively new for many firms and levels of expertise are far lower than for climate risk, with over 40% of firms still currently investigating whether it should even be treated as a risk.
  • Just 17% of firms are using metrics, targets, or limits to assess drivers of nature-related risks, with another 13% implementing them now.
  • Nature-risk staffing and training is on the rise, with around half of firms offering nature-risk training to some functions and 13% of firms offering it to their entire staff.

Download the report here.