Release：Enhancing Financial Resilience: Identifying and Managing  Nature-related Financial Risks

Time：2025.08

As global ecological degradation intensifies, nature-related risks such as biodiversity loss and resource scarcity have become systemic threats to long-term economic stability. Therefore, the disclosure framework developed by the Taskforce on Nature-related Financial Disclosures (TNFD) has garnered widespread attention globally since its launch. It provides a systematic approach for financial institutions and companies to identify, assess, and manage nature-related risks and opportunities. In September 2023, TNFD released its final recommendations, followed promptly in October by the accompanying LEAP approach, promoting the mainstreaming of nature into financial and risk decision-making.

This report demonstrates how financial institutions and companies can integrate nature-related risks into their operational processes by analysing the four core phases of the LEAP approach - Locate, Evaluate, Assess, Prepare - supplemented by the initial practices of four financial institutions, including Oxbury Bank, and three companies, such as Mengniu Dairy Company Limited. Furthermore, the report identifies challenges and opportunities in implementing nature-related financial disclosures across five key dimensions: policies and standards, capacity building, tools and methodologies, products and mechanisms, and international cooperation. It also provides targeted recommendations for central banks and financial regulators, financial institutions, and companies, respectively, aiming to guide financial capital towards nature-positive activities and collectively build a more resilient and sustainable economic future.