In addition, the NGFS has developed forward-looking scenarios, identified data gaps and assessed how climate change is relevant for monetary policy. Through these activities, clear light has been shone on the relevance of climate change for the financial sector. Concrete tools have been developed and significant progress has been made.
However, forests – and more broadly, nature – have so far remained too much in the shadows. Recognising the harm that nature-blind financial flows may cause, and that climate change and environmental degradation are very much related, last month the NGFS published a study on biodiversity and financial stability.