Corporate Nature Risk Perceptions

Snorre Gjerde, Zacharias Sautner, Alexander F. Wagner and Alexis Wegerich
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Snorre Gjerde: Norges Bank Investment Management (NBIM)
Zacharias Sautner: University of Zurich - Department of Finance; Swiss Finance Institute; European Corporate Governance Institute (ECGI)
Alexander F. Wagner: University of Zurich - Department of Finance; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI); Swiss Finance Institute
Alexis Wegerich: Norges Bank Investment Management (NBIM)

No 25-86, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

Abstract: We survey companies worldwide to explore the evolving landscape of nature risks. Nearly half of all companies (48%) view nature risks as financially material, and 43% of those perceive nature-related physical risks, and 27% transition risks, as having financial effects already today. In line with these materiality perceptions, three-quarters of companies experiencing nature-related investor engagement view these interactions as value-generating. Nonetheless, according to the respondents, investor attention remains limited in key respects: while 40% report that investors consider nature risks, fewer than 25% believe investors assess how these risks affect cashflows or costs of capital. Half of the respondents believe investors will prioritize climate over nature; however, many think both topics are so intertwined that they cannot be separated. Our findings underscore the growing recognition of nature risks as financially relevant, while also pointing to challenges and opportunities for their integration into financial analysis and investor engagement.

Keywords: Nature risk; biodiversity risk; shareholder engagement; nature capital (search for similar items in EconPapers)
JEL-codes: G12 G30 Q57 (search for similar items in EconPapers)
Pages: 76 pages
Date: 2025-10
New Economics Papers: this item is included in nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:chf:rpseri:rp2586

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