Publication: Nature-Related Risk Assessment Approaches for the Financial Sector: Applicable Approaches and Implications in East Asia and Pacific
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2024-07-12
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2024-07-12
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This paper analyzes several existing approaches and data platforms for assessing nature-related financial risk in the East Asia and Pacific region and examines the current level of disclosure by companies in East Asia and Pacific countries. Chapter 2 discusses how companies and financial institutions can assess their impact on nature using existing approaches, following the TNFD’s LEAP process. Chapter 3 explores specific data related to East Asia and Pacific countries from different platforms. It is noted that in some East Asia and Pacific countries, there are very few publicly listed companies, making it hard to find relevant corporate data. The chapter also highlights the challenges of applying existing approaches to developing economies. Chapter 4 compares sustainability disclosure standards and nature-related risk assessments in various East Asia and Pacific countries and analyzes reports on country-specific risks and companies’ own disclosures. Finally, chapter 5 summarizes the paper’s key findings, discusses its contributions and limitations, and suggests areas for future improvement. It proposes that financial regulators could improve by enhancing the availability of nature-related data, developing material indicators and metrics, instituting sustainability reporting requirements for financial institutions and corporations, supporting academic research to assess nature-related financial risks, and fostering regional cooperation.
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“World , Bank. 2024. Nature-Related Risk Assessment Approaches for the Financial Sector: Applicable Approaches and Implications in East Asia and Pacific. © World Bank. http://hdl.handle.net/10986/41863 License: CC BY-NC 3.0 IGO.”
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