Researchers who’ve contributed to a report out today about the financial cost of damage to the natural environment say they are already finding solutions and there is still time to make a difference.
Whilst the report: Assessing the Materiality of Nature-Related Financial Risks for the UK paints an alarming picture of the extent of damage estimated to be caused, some solutions have already been found and many more are being explored. And scientists say this could be the turning point we need for effective change.
The Environmental Change Institute (ECI) is Oxford University’s interdisciplinary institute for research on the complex processes of global environmental change, the exploration of sustainable solutions and the promotion of change for the better through partnerships and education.
Researchers at the ECI have for many years studied environmental change and its impact. The Institute believes harnessing interdisciplinary science in decision-making is key to making a difference.
Scientists working across eight disciplines at the ECI; Resilience & Development; Infrastructure; Ecosystems; Land, Society & Governance; Food Systems; Environment & Health, Energy, and Climate are finding credible solutions, or short-term alternatives that buy more time to find solutions for addressing environmental sustainability. Their studies are proving that real solutions can be developed and are already in use across the world.
Lead author Dr Nicola Ranger, Director for Greening Finance at the UK Integrating Finance and Biodiversity Programme and leader of the Resilience & Development programme at the ECI, said:
Over the last decade, Central Banks and financial institutions woke up to the risks posed by climate change and we’ve seen meaningful steps to address them, including mandating disclosures, risk pricing and beginning to shift capital flows toward green sectors and technologies.
"With this report, we comprehensively demonstrate that risks from environmental degradation and biodiversity loss are at least as severe and urgent, and indeed that if not addressed, will double climate change losses.”
Co-author, Dr Jimena Alvarez, Lead of Greening Finance for Nature and Research Associate in Resilient Systems & the Environment, at the ECI, added:
The financial sector has a critical role to play in achieving a nature positive future. Our research shows that it would be in their best interest to do so given the macroeconomic criticality of nature-related financial risks.
"A paradigm shift is needed which brings nature at the heart and centre of financial risk assessment. Building capacity to assess and manage nature-related financial risks - including leveraging on data and analytics like the ones included in this report, integrating nature into transition plans, and supporting clients on their transitions are some ways in which financial institutions can move forward.”
Michael Obersteiner, Director of the ECI, said: “In an interconnected world, it is no surprise that cause and effect can go both ways, and that international issues can negatively impact our economy. We typically view nature as the victim, which suffers from competition for land and the effects of climate change. However, this report highlights the ways in which problems from the natural world can come back to cause difficulties for our economy.
“Some of these issues, such as crop, livestock and human diseases are long standing threats, likely exacerbated by a changing climate, but some, such as wildfires are playing out at larger, more impactful scales as our world changes. At both the national and international level, we are forced to consider that limiting land use and climate threats to biodiversity is in our own interests, as well as that of nature itself.”
Recent solutions identified by researchers include:
- The Environmental Benefits from Nature (EBN) Tool
- This is an extension of DEFRA’s biodiversity metric which shows how changes in natural capital affect the delivery of wider ecosystem services such as regulation of flooding, erosion, air quality and climate, provision of food and water, and cultural services such as recreation and aesthetic value.
- Biodiversity & Soil Health Metrics Tool
- A tool to help with designing a biodiversity and soil health monitoring strategy which will ensure genuine benefits and monitor impact.
- The Mapping Opportunities Tool
- This can be used to generate local maps which show the potential of Nature-based Solutions (NbS) and nature recovery opportunities in a given area. It allows you to estimate ecosystem service scores, ie the benefits currently delivered by the land. Then you identify opportunities for enhancement through nature recovery and nature-based solutions.
- Enhancing the Resilience of London's Food Systems Report
- This report found embedding food resilience in agendas such as climate, planning and health as well as addressing the overlap between income and food access could help London's complex and fragile food system better meet the needs of its growing population.
- LEAP (Livestock, Environment and People) programme
- The LEAP programme aims to understand the health, environmental, social and economic effects of meat and dairy production and consumption to provide evidence and tools for decision-makers to promote healthy and sustainable diets.
Tom Harwood, Associate Director of the ECI, said: “At the ECI, we operate at global, national and local scales, working in partnership with people who can make a difference. Our goal is to train the next generation of environmental leaders with the knowledge and critical thinking to do the same.
Our research is constantly evolving to adapt to an ever changing suite of environmental challenges and the development of new ideas and understandings. Our aim is to shape scientific, policy and business agendas and co-evolve our research programmes so that they are yielding the most relevant insights.
“We accept that there will always obstacles to the sustainable management of the Earth’s systems, in governance, society and the economy, and that these challenges only get greater in a rapidly changing world. However, the ECI strives to demonstrate that practical solutions exist and can make a difference.”