WWF and CDP Call for Integration of Nature-Related Risks in Banking Regulations to Mitigate Financial Crises

A recent policy paper from WWF’s Greening Financial Regulation Initiative and CDP stresses the need for financial regulators to integrate nature-related risks into the frameworks governing major banks. Titled “Addressing the Giants,” the paper advocates for enhanced risk monitoring, additional capital requirements, and stress testing against environmental scenarios for Global Systemically Important Banks (G-SIBs). It calls on organizations like the Financial Stability Board to revise regulations to prepare banks for nature-induced financial shocks and to reduce environmental degradation linked to financial practices. The paper emphasizes the importance of robust environmental disclosures and collaborative efforts among banks to align with initiatives like the Taskforce on Nature-related Financial Disclosures. Overall, it serves as a roadmap for incorporating sustainability into the financial sector to prevent future crises. Resources: https://esgnews.com/wwf-and-cdp-call-for-integration-of-nature-related-risks-in-banking-regulations-to-mitigate-financial-crises/