Note on the supervision of nature-related financial risks

Nature-related risks – whether physical or transition – can affect established financial risk categories. As financial institutions’ reliance on ecosystem services becomes clearer, these risks are gaining prominence. Although some supervisory challenges persist – including data gaps, methodological fragmentation and the need for closer alignment with climate-related work – supervisory practices in this area are emerging. To help support this progress, this note proposes a pragmatic four step approach that builds on existing climate supervision and addresses current limitations. It offers a pathway towards a more integrated climate-nature prudential framework.

This note is part of the NGFS 2026 Nature Package.