Biodiversity Loss and Threats to Financial Stability

Resource description: This podcast features Dr. Janet Terblanché, Divisional Head of Policy at the South African Reserve Bank, discussing the implications of biodiversity loss for financial stability and its connection to broader climate-related financial risks.

Key insights:

1. Highlights NGFS research linking biodiversity loss to macroeconomic and financial system risks, emphasizing both physical and transition risks
2. Summarizes NGFS recommendations for central banks and supervisors
3. Describes South Africa’s multi-level approach to managing nature-related risks
4. Notes the importance of building capacity, enhancing supervision, and mobilizing investment to support a nature-positive economy

Why this matters: As biodiversity loss increasingly threatens financial and price stability, this resource outlines how financial authorities can incorporate nature-related risks into regulatory frameworks and risk management practices.