The Network for Greening the Financial System (NGFS) has published a note on the supervision of nature-related financial risks, setting out a pragmatic four-step approach intended to help supervisors incorporate these risks into prudential oversight by building on existing climate supervision. The note frames nature-related risks, whether physical or transition, as drivers of established financial risk categories as financial institutions’ reliance on ecosystem services becomes clearer. It highlights persistent supervisory challenges including data gaps, fragmented methodologies, and the need to better align nature-related work with climate-related supervisory frameworks, while noting that supervisory practices are beginning to emerge. The publication forms part of the NGFS 2026 Nature Package.
Network for Greening the Financial System 2026-04-09
Network for Greening the Financial System proposes a four-step supervisory approach for nature-related financial risks
The Network for Greening the Financial System has published a note on supervising nature-related financial risks, proposing a pragmatic four-step approach to integrate these risks into prudential oversight by building on existing climate supervision. The note characterises nature-related physical and transition risks as drivers of traditional financial risk categories, highlights challenges such as data gaps and fragmented methodologies, and calls for better alignment with climate-related supervisory frameworks.