Biodiversity loss and degradation pose significant but often overlooked threats to global financial stability, comparable to or potentially exceeding climate-related risks. These risks manifest through both physical disruptions to business operations and transition risks from economic adjustments needed to address biodiversity loss. Financial institutions, including banks, asset managers, and insurers, are exposed to these nature-related risks primarily through their investments, loans, and insurance policies to companies and households.
A growing body of research is quantifying biodiversity risk exposures at both individual and systemic levels, with recent work examining how financial markets price corporate debt and how biodiversity risk affects financial stability. This special issue seeks cross-disciplinary contributions from researchers, practitioners, and policymakers addressing how biodiversity risk impacts the financial system and individual financial actors, including topics such as financial system mapping, debt pricing mechanisms, instrument incorporation, and regulatory frameworks around biodiversity exposure.