Economic activity and financial assets depend upon the ecosystem services provided by nature and the environment. But our financial system has a considerable negative impact on biodiversity and our climate through the economic activities that are enabled by its lending, investment and insurance. There is clear evidence that these impacts are happening and that they are causing massive costs for our society.
Central banks and supervisors are crucial players in helping reverse the loss of biodiverstiy and climate change. They need to play a much more active role in protecting against the future financial risks and instability posed by this twin crisis, and act in a precautionary way to proactively manage these risks.
Monetary policy and financial regulation instruments can mitigate these risks. But whilst central banks and supervisors have a range of tools at their disposal to ensure a rapid and just transition to a nature positive, net zero economy, they are not deploying all the tools.
Find out how central banks and supervisors can deliver rapid change and be in line with global sustainability goals. Click on our Call to Action to central banks and supervisors below, signed by more than 90 leading international Non-Governmental Organisations (NGOs), think tanks, coalitions, researchers and individual thought leaders demanding urgent action.