Evidence review on the financial effects of nature-related risks

This report, jointly authored by the Taskforce on Nature-related Financial Disclosures (TNFD), the University of Oxford (as part of the Resilient Planet Finance Lab) and Global Canopy, synthesises the current evidence on the financial materiality of nature-related risks for corporates and financial institutions.

Drawing on over 600 pieces of evidence from 360 sources — including academic research, case studies, company reports and expert insights — and interviews with corporates and financial institutions, the paper explores how nature-related risks, stemming from business dependencies and impacts on nature, can translate into financially material outcomes.

You can access and download the nature-related financial risks database by following this link.

Key aims:

• Improve understanding of how nature-related risks affect cash flows, cost of capital and access to capital
• Identify evidence gaps in the financial materiality of these risks
• Share insights from corporates and financial institutions on current practices, challenges and lessons learned
• Provide recommendations to corporates, financial institutions, data providers, academia, standard setters and regulators

Key findings

This paper shows that while nature-related risks are not yet consistently assessed or disclosed as financially material, the evidence of financial effects of nature-related risks for businesses and the economy is extensive, and that information on nature-related risks is important to investors. While there is high quality evidence across all evidence types, the evidence at the company level is not yet as abundant. The report highlights the importance of integrated risk assessment approaches, improved data availability, and the role of scenario analysis in strengthening financial resilience.

A public consultation is open to gather additional evidence and feedback on the accompanying nature-related financial risks database.