The Network for Greening the Financial System has published a compendium showing how central banks and supervisors are applying its 2024 conceptual framework to assess nature-related financial risks. Drawing on 35 initiatives and six case studies, the report finds that assessment is moving from conceptual analysis toward practical implementation, with emerging convergence around priority risks and methods. Water-related ecosystem degradation is the most frequently assessed physical risk, while exposures are concentrated in sectors including agriculture, forestry, water-intensive manufacturing, energy and real estate. Supply-chain effects can substantially amplify direct impacts and spread them across economies and financial portfolios. Most institutions begin with exposure and dependency mapping before adding geospatial analysis, firm-level assessment, macroeconomic modelling and scenarios. Credit risk is the most developed financial transmission channel, while market, collateral, sovereign and systemic risks remain less advanced. Physical-risk assessment is also more mature than transition-risk analysis, which is constrained by uncertainty over policy pathways and a lack of widely adopted scenarios. The report supports a layered use of complementary methods and identifies priorities including better ecosystem and geospatial data, more standardized metrics, integrated climate and nature analysis, stronger macroeconomic modelling and more robust nature-related stress testing.

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