UNEP FI publishes new guidance to strengthen nature-based risk assessment across financial institutions
The United Nations Environment Programme Finance Initiative (UNEP FI) has published guidance, co-developed with Equator Principles, on nature-based risk assessment (NBRA) to help financial institutions (FIs) evaluate risks arising from nature loss such as accelerating biodiversity decline, water stress, soil degradation and declines in natural capital. The guidance emphasises that integrating project-related finance data can provide high-quality, location-specific insights that strengthen risk scoping, prioritisation, analysis and decision-making. It recommends that FIs involve project-related financing teams early in the NBRA process, adopt an iterative approach, clearly define roles and responsibilities and build senior-level support. FIs are also encouraged to collate and analyse project-level impacts and dependencies and to develop specific, measurable, achievable, relevant and time-bound (SMART) risk management actions to enhance long-term resilience. In addition, the guidance advises alignment with frameworks such as the Kunming–Montreal Global Biodiversity Framework, the Science Based Targets Network (SBTN) and the Taskforce on Nature-related Financial Disclosures (TNFD).