© Andre Bärtschi/WWF

Greening financial regulation initiative

Why we need to green financial regulation

Rapid biodiversity decline is fueling economic and financial risks
The unprecedented rate of climate change and environmental degradation is undermining key ecosystem services and natural resources on which our economic system depends.  

Finance can be a powerful tool for shaping a healthy economy if our global financial system evolves to respond to these significant financial risks. Regulators, central banks and financial supervisors must support the transition to a sustainable planet. 

Financial institutions worldwide are now considering what measures they can introduce to integrate climate risks into their operations and how these measures can be successfully implemented.

However, biodiversity loss and ecosystem degradation are environmental risks that are not well recognized or acknowledged yet and should be at the forefront of risk assessments and investment impact metrics.
 
 
© WWF
© WWF
© Andreas Brucker /Unsplash

What we are doing

Putting climate and environmental risk at the heart of the financial system

We are working to evidence the link between financial and environmental risks like climate change, water scarcity and biodiversity decline, and engage policy makers, central banks and financial supervisors on the need to integrate those risks into their mandates and operations.

We advocate a precautionary approach to these risks. And we provide the necessary tools, scientific research, assesessments, and assistance to help enhance ambitions on the sustainable financial global policy agenda.

1) We regularly track how central banks and supervisors are making progress on the integration of climate, environmental and broader social considerations in their mandates and operations via our best practice online platform SUSREG.

2) We undertake research, capitalizing on in-house expertise and external partners.

3) We offer targeted assistance to individual financial supervisors, central banks and policy makers delivering regular overviews which are backed up by scientifically based data, tools and methodologies.
 

For more information, please contact: gfr@wwf.ch 

 

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