Poor management of biodiversity also a risk to financial stability of economies: MAS

AS the world’s knowledge of climate change deepens, few would now argue over the devastating effects it has on biodiversity and health. Less obvious but just as deadly is the damage to the financial stability of economies.

The Network for Greening the Financial System (NGFS) — a network of over 100 central banks, currently chaired by the Monetary Authority of Singapore (MAS)‘s managing director, Ravi Menon — has recognised climate-related risks as a source of financial risk.

Observing that financial flows can direct positive change in environmental action, while “nature-blind” financial flows can potentially aggravate environmental degradation, the NGFS has exhorted governments to ensure that their policies and regulations influence the right outcomes.