Overview
Research under this theme examines how biodiversity loss and natural resource use interact with financial markets, and how finance can respond. The Biodiversity Finance Initiative develops a research agenda that brings nature‑related risks into mainstream asset pricing and portfolio analysis. Projects on Natural, Social and Financial Capitals investigate how financial development and social capital relate to environmental outcomes, highlighting when economic growth can put pressure on ecosystems. Complementary work on the real effects of pollution and ecological responsibility studies how markets price environmental externalities and how measurement frameworks can better reflect ecological realities. Together, these projects seek to understand when biodiversity and natural capital become financially material, how investors can incorporate nature‑related information into decision‑making, and what role financial instruments and policies can play in supporting conservation and sustainable resource use. The research provides an evidence base for integrating biodiversity into risk management and investment practice.
