Financial actors need to act swiftly
decline in global wildlife populations in the last 50 years
of drugs used for cancer are natural or are synthetic products inspired by nature
additional costs if natural pollination by species needs to be replaced by artificial one
of climate change mitigation could be provided by natural climate solutions by 2030
Zurich/Davos, 21. January 2020 – PwC Switzerland and WWF Switzerland find in their new report "Nature is too big to fail – Biodiversity: the next frontier in financial risk management" that the financial risks associated with the loss of biodiversity will become increasingly important in 2020 - especially in the lead-up to the United Nations Biodiversity Conference in October in Kunming (China). As climate change and the loss of biodiversity mutually reinforce each other, decision-makers face a huge challenge to respond to this double crisis, as the risk of financial market instability significantly increases.
Climate change is a financial risk and recognised as such by a growing number of financial actors and regulators. A related but unrecognised environmental risk is the rapid loss of global biodiversity. Climate change further accelerates the extinction of species and leads to rapid changes in ecosystems. This in turn drastically limits natural carbon sequestration of ecosystems, which again worsens climate change. A negative feedback loop, which has been until today almost completely ignored by decision-makers, the financial sector and regulators.
“Biodiversity-related financial risks have not only been completely ignored by the financial sector but also by decision-makers globally. It is time to respond swiftly to the double crisis from biodiversity loss and climate change. Thus, humanity is in urgent need for a New Deal for People and Nature. All market, governmental and civil society actors are needed. Nature is too big to fail.”
Source: adapted from BaFin (2019)