The consequences of biodiversity and ecosystem loss for humanity as a whole are potentially devastating. Ecosystems and biodiversity, among others, can be considered a source of defence against the effects of climate change and are closely interconnected with it.
Omitting to consider the importance of these aspects, mitigation and adaptation to the consequences of the loss of nature, can represent a source of economic risk potentially undermining financial stability, as well as compromising people’s physical and mental well-being.
Industries that rely heavily on nature generate 50 per cent of global gross domestic product. In recent years, institutional focus to the risks posed by the loss of biodiversity and ecosystems has increased, also with specific reference to the insurance sector, both by regulators and by the industry players themselves, who are aware of the potential consequences for business.