Some G20 financial regulators are overlooking biodiversity loss and deforestation

Regulators who have assessed nature-related risks found that biodiversity and nature loss could result in credit losses, defaults, and abrupt price corrections that pose financial risks to banks and other institutions.

Financial regulators and supervisors in some G20 countries are overlooking the risks posed by biodiversity loss and deforestation because of insufficient data, focusing instead on climate risks, a report by the G20’s financial watchdog found.