The Sound of Economics cover image

The Sound of Economics

Nature on the balance sheet: a financial perspective

Dec 17, 2024
Heather Grabbe, a Senior Fellow at Bruegel, and Thomas Viegas, Nature strategy lead at Aviva, explore the vital connection between biodiversity and finance. They discuss the systemic risks of biodiversity loss and highlight the integration of nature conservation into business strategies. The duo emphasizes the urgency of reforming harmful subsidies and aligning economic frameworks with natural limits. They also touch on innovative financial tools needed for sustainability and the high socio-economic costs of ecosystem degradation, advocating for the intrinsic value of nature.
38:04

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Quick takeaways

  • Integrating nature conservation into financial frameworks is crucial for addressing systemic risks associated with biodiversity loss and ensuring economic stability.
  • The incorporation of biodiversity economics into financial systems is essential for bridging funding gaps and incentivizing sustainable practices globally.

Deep dives

The Urgent Need for Biodiversity Awareness

The podcast highlights the escalating risks associated with biodiversity loss, emphasizing that nature's degradation has reached critical levels that threaten essential ecosystem services, such as clean water, air, and pollination. These impacts are not reflected in financial statements, leaving businesses unaware of the potential systemic risks that can emerge from environmental disasters like floods or droughts. As the report suggests, there is an urgent need to bridge the gap between conservation efforts and market dynamics, urging market participants to recognize the intrinsic link between ecological health and economic stability. This shift in perspective is crucial for avoiding catastrophic outcomes for both nature and sectors heavily dependent on ecosystem services.

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