Nature-related financial risks in our own account investments: An exploratory case study and deep dive in electric utilities

About this LEAP Use Case

An exploratory assessment of nature-related financial risks in De Nederlandsche Bank (DNB) account investments and a sectoral deep dive into electric utilities using coordinates of company assets. In the process, DNB has piloted the LEAP approach of the TNFD. 

Key outcomes

• The assessment showed that assets in DNB’s account investments are potentially exposed to nature-related financial risks. The electric utility companies' analysis further showed that risks can be both reputational and physical in origin.
• The outcomes of the LEAP assessment can be used for engagement with external asset managers on how they manage nature-related financial risks.
• An improvement in the climate dimension does not necessarily translate into lower nature-related financial risk.
• Nature-related financial risk analysis is complex, and as such capacity-building remains important.

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