Biodiversity loss could wreck the global financial system – and it’s only a matter of time | Geoff Summerhayes and Laura Waterford
Corporate Australia is familiar with the concept that climate change presents a financial risk to the global economy, but more recently biodiversity loss has emerged as an equally important risk.
In fact, climate change and biodiversity loss are now often referred to as the “twin crises” facing the global financial system and awareness of the role the financial sector plays in this is rising swiftly.
Crucially, a recent global review on the economics of biodiversity commissioned by the UK Government, often referred to as “The Dasgupta review”, concluded that our economic system is dependent on biodiversity. This fact is rightly of concern to the financial sector, given the world’s biodiversity is declining faster than at any other time in human history, and an estimated 1 million species are at risk of extinction.
Just last month the G7 climate and environment ministers acknowledged “with grave concern that the…