European SMEs' exposure to ecosystems and natural hazards: a first exploration

Serena Fatica, Ioanna Grammatikopoulou (), Dominik Hirschbuehl (), Alessandra La Notte () and Domenico Pisani ()
Additional contact information
Ioanna Grammatikopoulou: European Commission, https://ec.europa.eu/jrc/en
Dominik Hirschbuehl: European Commission, https://ec.europa.eu/jrc/en
Alessandra La Notte: European Commission, https://ec.europa.eu/jrc/en
Domenico Pisani: European Commission, https://ec.europa.eu/jrc/en

No 2024-03, JRC Working Papers in Economics and Finance from Joint Research Centre, European Commission

Abstract: Nature-related financial risks have emerged as critical concerns for policymakers and financial actors. Central to this issue are ecosystem services, which play an integral role in various production processes but may be interrupted due to nature degradation. This article delves into the vulnerability of European SMEs by combining firm-level exposures to ecosystem service dependencies with regional information on the relative abundance of ecosystem services provisioning and the risk of natural hazards. Focusing on long-term debt positions to gauge financial stability implications, the results reveal moderate nature risks for European SMEs at the current stance but also highlight a possible concentration of risks and a need to further refine the use of available indicators.

Keywords: ecosystem services; natural capital; nature degradation; physical risks; environmental risks; ENCORE; risk management; SMEs (search for similar items in EconPapers)
JEL-codes: G21 G38 Q5 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2024-03
New Economics Papers: this item is included in nep-agr, nep-eec, nep-ent, nep-env, nep-eur and nep-sbm
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https://publications.jrc.ec.europa.eu/repository/handle/JRC136901

Related works:
Journal Article: European SMEs’ Exposure to Ecosystems and Natural Hazards: A First Exploration (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:jrs:wpaper:202403

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