Document summary
The links between financial services, risk and BES have, to date, been weak. Resource scarcity,loss of biodiversity and degradation of ecosystem services such as freshwater availability have, however, started to present financially material risks and opportunities for bankers, investors and insurers. This is particularly the case with financial institutions that have a large exposure or client base in industries directly dependent on BES, such as fisheries, agriculture and tourism, and industries with major BES footprints, such as the extractive sectors. Leading companies are taking steps to better understand and manage their impacts and dependence on BES. Senior executives in financial institutions should recognise that biodiversity is not something to be dealt with as a peripheral issue or merely as philanthropy. Hardwiring BES into the heart of business models and core strategies is vital for long-term growth and success. This can be achieved by embedding evaluation and management of BES risks and opportunities directly in financial products and services.This UNEP FI CEO Briefing is intended for forward-looking financial institutions to operationalise BES in the financial sector. It builds on earlier work by UNEP FI's Bloom and Bust report 3 and the TEEB reports, combined with our own analysis.