EU banks and nature-related risk management: from awareness to action

Laudine Goumet, Martina Menegat, Elena Almeida, Maria Waaifoort and Agnieszka Smolenska

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Nature degradation is increasingly recognised as a source of prudential and macrofinancial risk. This has prompted regulators and banks in the European Union to move beyond climate-only approaches to assess broader environmental exposures. An analysis of 15 EU banks’ public disclosure documents reveals a developing approach to nature-risk mitigation but a gap between ambition and implementation. Banks, financial supervisors and regulators should build on emerging good practices even in the face of regulatory rollbacks. They should treat nature-related risks as material prudential concerns, strengthen monitoring and assessment frameworks, and address environmental risks in their entirety rather than through a climate lens alone.

JEL-codes: F3 G3 N0 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2026-03
References: Add references at CitEc
Citations:

Downloads: (external link)
https://researchonline.lse.ac.uk/id/eprint/137487/ Open access version. (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:137487

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().