Nature-Related Risk Assessment Approaches for the Financial Sector - Applicable Approaches and Implications in East Asia and Pacific
Contents
-
Introduction
- Purpose and Scope
- Importance of addressing nature-related risks within the financial sector
-
Overview of Approaches
- From Nature-Related Risks to Financial Risks
- TNFD's LEAP Process
- Locate Phase: Identifying nature-related risks and dependencies
- Evaluate Phase: Assessing the impact of these risks
- Assess Phase: Quantifying and prioritizing risks
- Prepare Phase: Developing strategies to manage risks
- TNFD's Metrics
- Core Global Disclosure Metrics
- Disclosure Metrics for Financial Institutions
-
Implementing Approaches for East Asia and Pacific Countries
- Status of the East Asia and Pacific Region
- Geographical Characteristics and Main Threats
- Important Impact Drivers and Indicators
- Applicability of Data Platforms
- Selecting Data Platforms
- Selected Data Platforms for Dependency Analysis
- Selected Data Platforms for Impact Analysis
- Implications for Implementing Approaches
-
Disclosure and Risk-Assessment Practices in East Asia and Pacific Economies
- Status of Sustainability Disclosure Policies
- Analysis of Existing Cases and Findings
- Current Status of Nature-Related Financial Risk Disclosures
- Country- or Sector-Level Reports
- Company-level Disclosure Cases
-
Summary and Recommendations
- Summary of Key Findings
- Specific Recommendations for Addressing Nature-Related Risks
Abbreviations
- ASEAN: Association of Southeast Asian Nations
- BES: Biodiversity and Ecosystem Services
- BFFI: Biodiversity Footprint Financial Institutions
- CBF: Corporate Biodiversity Footprint
- EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization
- ENCORE: Exploring Natural Capital Opportunities, Risks, and Exposure
- ESG: Environmental, Social, and Governance
- FCI: Finance, Competitiveness, and Innovation (World Bank Global Practice)
- GBSFI: Global Biodiversity Score for Financial Institutions
- GICS: Global Industry Classification Standard
- GID: Global Impact Database
- GLOBIO: Global Biodiversity Model for Policy Support
- HFG: Hana Financial Group
- IAS: Invasive Alien Species
- IBAT: Integrated Biodiversity Assessment Tool
- IFRS: International Financial Reporting Standards
- IPBES: Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services
- ISSB: International Sustainability Standards Board
- IUCN: International Union for Conservation of Nature
- KAIST: Korea Advanced Institute of Science and Technology
- LCA: Life Cycle Assessment
- LEAP: Locate, Evaluate, Assess, Prepare (process)
- MSA: Mean Species Abundance
- PBAF: Partnership for Biodiversity Accounting Financials
- PCAF: Partnership for Carbon Accounting Financials
References
- Detailed references provided for further reading and research.
Summary
This comprehensive report focuses on the application of nature-related risk assessment methodologies within the financial sector, particularly in the East Asia and Pacific regions. It outlines a structured approach—TNFD's LEAP process—to identify, evaluate, assess, and prepare for nature-related risks. The report also discusses the relevance of various data platforms and metrics tailored for the East Asia and Pacific context, emphasizing the importance of integrating environmental considerations into financial decision-making. It analyzes existing practices and policies, highlighting the current status of sustainability disclosure and the potential for enhancing risk assessment through collaborative frameworks and industry standards. Recommendations are provided to guide the implementation of nature-related risk management strategies, aiming to foster sustainable economic growth while protecting natural resources.
