OECD-INSPIRE workshop: Assessing biodiversity-related risks, impacts and dependencies in the financial sector

The OECD workshop, a joint initiative of the OECD Environment Directorate (ENV) and the Directorate for Financial and Enterprise Affairs (DAF), in collaboration with the International Network for Sustainable Financial Policy Insights, Research and Exchange (INSPIRE), aimed to facilitate knowledge sharing and discussions on the crucial issue of assessing biodiversity-related risks for the financial sector. In a context of deep uncertainty, the financial sector must take into account the risks and impacts associated with biodiversity loss and how it translates into financial risks. Each session delved into the challenges and limitations in order to shed light on the relationship between biodiversity loss and socio-economic loss, specifically with regards to the financial sector. The workshop also showcased innovative methods that are currently available for central banks and financial institutions to evaluate the financial risks, impacts, and dependencies associated with biodiversity loss. Additionally, the workshop delved into the ongoing challenges in translating biodiversity risks into financial risks and incorporating biodiversity loss into economic and financial risk management models.

The workshop gathered over 260 participants, including over 160 participants joining virtually on Zoom and 100 participants attending in-person at the OECD Headquarters. It was held under the Chatham House rule, with participants speaking on their personal capacity, which encouraged a very rich and open discussion. The workshop was held back-to-back with the OECD Committee on Financial Markets, and brought together a diverse group of stakeholders, including central banks, financial and environment ministries, financial market participants, methodology providers, academia, and civil society. The event aimed to equip central banks and policymakers with the technical knowledge and capacity to understand the economic and financial risks arising from biodiversity losses.