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Biodiversity and Finance: A Preliminary Assessment of Physical Risks for the Banking Sector in Emerging Markets

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dc.contributor.authorCalice, Pietro
dc.contributor.authorDiaz Kalan, Federico
dc.contributor.authorDunz, Nepomuk
dc.contributor.authorMiguel, Faruk
dc.date.accessioned2023-05-04T18:39:29Z
dc.date.available2023-05-04T18:39:29Z
dc.date.issued2023-05-04
dc.description.abstractEconomic activity depends on a flourishing biodiversity and intact environment through the provision of ecosystem services. The depletion of these services poses physical risks for the financial sector. This paper attempts to measure the potential exposure of the banking systems in 20 emerging markets to nature loss through their lending portfolio. The results show that banks in emerging markets allocate around half of their credit portfolio to firms whose business processes are highly or very highly dependent on one or more ecosystem services. The results also provide initial and preliminary evidence that points to a negative correlation between country income level and dependency on ecosystem services. Accounting for indirect dependencies on ecosystem services via supply chains and trade could change this observed relationship, however. Furthermore, the highest dependencies on ecosystem services across countries tend to be on climate regulation and flood and storm protection, indicating the interconnectedness of climate change and nature loss.en
dc.identifierhttp://documents.worldbank.org/curated/en/099526305022388443/IDU0e52335a30e0f804949088f30d8c4eee5cee8
dc.identifier.doi10.1596/1813-9450-10432
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/39785
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Papers; 10432
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectBIODIVERSITY
dc.subjectGREEN FINANCE
dc.subjectECOSYSTEM SERVICES
dc.subjectCLIMATE CHANGE IMPACT
dc.subjectNATURE LOSS
dc.subjectENVIRONMENTAL RISK
dc.subjectECONOMY AND CLIMATE CHANGE
dc.titleBiodiversity and Financeen
dc.title.subtitleA Preliminary Assessment of Physical Risks for the Banking Sector in Emerging Marketsen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleBiodiversity and Finance: A Preliminary Assessment of Physical Risks for the Banking Sector in Emerging Markets
okr.date.disclosure2023-05-02
okr.date.lastmodified2023-05-02T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099526305022388443/IDU0e52335a30e0f804949088f30d8c4eee5cee8
okr.guid099526305022388443
okr.identifier.docmidIDU-e52335a3-e0f8-4949-88f3-d8c4eee5cee8
okr.identifier.doi10.1596/1813-9450-10432
okr.identifier.doihttp://dx.doi.org/10.1596/1813-9450-10432
okr.identifier.externaldocumentum34054397
okr.identifier.internaldocumentum34054397
okr.identifier.reportWPS10432
okr.import.id633
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099526305022388443/pdf/IDU0e52335a30e0f804949088f30d8c4eee5cee8.pdfen
okr.topicMacroeconomics and Economic Growth::Climate Change Economics
okr.topicEnvironment::Biodiversity
okr.topicEnvironment::Environmental Disasters & Degradation
okr.unitEFI-ECA-FCI-Finance-1 (EECF1)
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