🚨🌍 Biodiversity Loss as a Financial Risk: Why It Matters 🌍🚨

I’m pleased to share our new article published in the Journal of Sustainable Finance & Investment, co‑authored with Laura García‑Jorcano.

In this paper, we show that biodiversity loss is not only an environmental concern, but also a source of real financial risk. Our results reveal strong sector‑specific effects: biodiversity degradation shapes extreme losses, profits, and even system‑wide risk, with particularly pronounced impacts during periods of financial stress and crisis.

The evidence suggests that the links between nature and financial markets are deeper and more relevant than is typically assumed in traditional risk analysis, and that overlooking biodiversity can lead to a mispricing of risk at both the sectoral and systemic levels.

Should biodiversity risk be treated as a core component of financial risk analysis?

👉 Read the full article here:
Biodiversity loss and financial markets risk: insights from a CoVaR approach