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

Time：2025.11

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 focuses on the Chinese and UK markets, aiming to provide practical guidance for financial institutions and businesses in both countries to identify and manage nature-related risks. This report demonstrates how financial institutions and companies can integrate nature-related risks into their operational processes by analysing the four phases of the LEAP approach - Locate, Evaluate, Assess, Prepare - supplemented by the initial practices of three financial institutions, including Oxbury Bank, and two companies, such as Mengniu Dairy Company Limited. Furthermore, the report systematically outlines the challenges and opportunities faced by China and the UK in promoting nature-related financial disclosure across five dimensions: policy standards, capacity building, tools and methods, products and mechanisms, and international cooperation. Based on this, the report offers differentiated recommendations for central banks and other financial regulatory agencies, financial institutions, and businesses in both countries, aiming to guide financial capital flows towards nature-positive activities and jointly build a more resilient and sustainable economic future.