Natural risk

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Deforestation in Europe, 2018. Almost all of Europe's originsl forests have been removed Deforestation central Europe - Rodungen Mitteleuropa.jpg
Deforestation in Europe, 2018. Almost all of Europe's originsl forests have been removed

Natural risks or nature risks are risks recognized in risk management that are related to the loss of natural assets. They may impact businesses or economies by impacting directly on operations or by negatively affecting society in a way that then creates market risks. The loss of nature can also contribute to systemic geopolitical risk because nature's assets and services, such as clean air, plentiful fresh water, fertile soils, a stable climate, provide vital public goods on which human societies rely for their functioning. An example is tropical deforestation. It is a key source of nature risk for sectors that either have an impact or dependency on tropical forests. [1]

Contents

Examples of impacts

See also

References

  1. "Nature Risk Rising: Why the Crisis Engulfing Nature Matters for Business and the Economy" (PDF). World Economic Forum. January 19, 2020.
  2. Tacconi, Luca; Zahrul Muttaqin, Muhammad (July 20, 2019). "Policy forum: Institutional architecture and activities to reduce emissions from forests in Indonesia" (PDF). Forest Policy and Economics. 108 101980. doi: 10.1016/j.forpol.2019.101980 . Retrieved March 7, 2021.
  3. Yusuf, Arief; Roos, Elizabeth; Horridge, Jonathan (September 2018). "Indonesia's Moratorium on Palm Oil Expansion from Natural Forests: Economy-Wide Impacts and the Role of International Transfers". Asian Development Review. 35 (2): 85–112. doi: 10.1162/adev_a_00115 .
  4. "Rethinking food and agriculture 2020-2030". RethinkX. September 2019.
  5. "Deforestation-driven reputation risk could become material for FMCGs" (PDF). Chain Reaction Research. May 9, 2019.