Corporate nature risk perceptions

Centre for Endowment Asset Management (CEAM)
Centre for Endowment Asset Management (CEAM)

Overview

The accelerating degradation of biodiversity, natural capital and ecosystem services is emerging as a material financial risk for global companies. A comprehensive survey of 385 portfolio companies, involving one of the world’s largest asset owners, provides one of the earliest, most detailed insights into how corporate leaders perceive, measure, manage and communicate nature-related risks. The findings confirm that nature loss has already become a financially relevant issue and will increasingly shape strategic decisions, regulatory exposure and investor engagement.

An interview with Zacharias Sautner.

Authors

Snorre Gjerde

Norges Bank Investment Management

Zacharias Sautner

University of Zurich and Swiss Finance Institute

Alexander F Wagner

University of Zurich and Swiss Finance Institute

Alexis Wegerich

Norges Bank Investment Management

Project aims

The project captures corporate perspectives at a pivotal moment, when nature risks are becoming visible in financial markets but before disclosure standards and valuation models are fully developed. This makes it a valuable baseline for investors, regulators and policymakers.

1

Perception of exposure to nature-related physical and transition risks

Looking at how companies perceive their exposure to nature-related physical and transition risks.

2

Assessment, management and disclosure of nature-related risks

Explores the ways firms identify, address and report their exposure to nature-related physical and transition risks.

3

Perceptions of investor interest and engagement on nature-related topics

Understanding how companies perceive and respond to investor interest and engagement on nature-related issues.

Key insights

1

Nature risks are widely viewed as financially material

  • Nearly 48% of companies consider nature risks financially material, while only 39% believe they are not and 13% remain unsure. Both physical and transition risks are already being felt.
  • 27% report financial effects from transition risks already occurring.
  • 43% of exposed companies say physical nature risks are affecting them today.

These findings underscore that nature-related disruptions, such as declining soil quality, water scarcity, ecosystem service loss and regulatory tightening, are no longer theoretical future concerns.

2

Material impacts occur across value chains

Companies report that financial exposure arises through multiple interconnected channels:

  • shifts in investor sentiment
  • impacts on products and services
  • operational disruptions
  • supply-chain vulnerabilities
  • reputational or licence-to-operate risks

Importantly, 41% of firms state that nature risks originate from multiple sources simultaneously, making them difficult to capture with a single indicator, unlike climate risks, which often rely on carbon metrics.

3

Corporate risk management is advancing but uneven

Half of companies have begun conducting or planning natureimpact assessments, while one-third are assessing nature dependencies.

  • 82% are pursuing measures to mitigate negative impacts on nature
  • 64% are using or planning stress-tests or scenario analyses
  • only 43% currently consider offsetting

4

Nature-related disclosures are growing quickly

Despite limited historical reporting, 74% of companies now disclose or plan to disclose nature risks. Leading frameworks include CDP, ESRS, GRI and TNFD. Firms appear motivated both by financial materiality and by the expectations of other stakeholders such as regulators, customers and civil society.

5

Investor attention is rising but not fully integrated

Most companies (68%) believe investor attention to nature risks has increased in recent years, driven by regulatory shifts and public awareness. Yet the research reveals a substantial disconnect:

  • but less than 25% believe investors assess how nature risks affect cash flows or cost of capital
  • about 40% believe investors consider nature risks in investment decisions

This gap indicates that investors are still early in translating nature concerns into valuation models.

6

Investor engagement is viewed as value-generating

Most companies (68%) believe investor attention to nature risks has increased in recent years, driven by regulatory shifts and public Almost three-quarters of companies that experienced nature-related engagement view it as value-adding, helping them identify blind spots, improve internal focus or align with best practices. One-third report that engagement directly influenced strategy or operations, clear evidence of the impact of stewardship.

Why this matters for investors

For investors, the report signals that nature risk is becoming a financially relevant, near-term issue with real equity and credit implications. Key takeaways include:

Nature-related risks already impacting cashflows

Shows that nature-related risks are no longer hypothetical, with effects already visible in corporate revenues and costs.

Rising transition risk and tightening regulation

Finds that transition risks are expected to grow, with around half of companies anticipating stricter nature-related regulation within the next 5 years.

Valuation models lagging nature-related financial impacts

Highlights that current valuation approaches do not fully capture nature-related financial risks, creating opportunities for investors and companies that move early.

Investor engagement as a catalyst for corporate action

Indicates that investor focus on nature-related issues is already influencing corporate behaviour, from strategic decisions to disclosure practices.

Climate and nature as inseparable risk domains

Reflects that most companies view climate and nature as deeply interconnected and believe they should be managed in an integrated way rather than in isolation.

Overall, the findings position nature risk as an emerging but rapidly evolving frontier in financial analysis. For investors seeking long-term resilience, understanding and integrating nature-related risks is increasingly essential.

Conclusion

Nature-related risks are rapidly becoming financially material, reshaping how companies assess exposure, manage impacts and communicate with investors. The survey shows that firms already feel both physical and transition pressures, while disclosure and risk-management practices are expanding but still uneven. Investors are paying more attention, yet valuation models lag behind emerging realities. As regulation tightens and nature loss accelerates, integrating nature risks into strategic and financial decisions will be essential for corporate resilience and for investors seeking sustainable long-term performance.

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