Exploring Natural Capital Opportunities, Risks and Exposure: A Practical Guide for Financial Institutions

Financial institutions wishing to understand and assess their exposure to natural capital risks have faced a lack of comprehensive and systematic information on how businesses depend on the environment and the consequences when that relationship is disrupted by environmental change. To help fill this gap and assist financial institutions in carrying out natural capital assessments, the Natural Capital Finance Alliance has partnered with UN Environment World Conservation Monitoring Centre to create ENCORE, a web-based tool that allows financial institutions to understand: ◼ How do the businesses in my portfolio depend on nature for their production processes and how material are these dependencies to the business? ◼ How does environmental change affect the ability of nature to continue providing the ecosystem services on which the businesses depend? ◼ What drivers of environmental change (such as climate change or pollution) have the greatest impact on businesses in my portfolio?