The agricultural sector is highly vulnerable to environmental risk, be it from climate change or the breakdown of ecosystems. This new sector-specific guide provides a framework for the inclusion of natural capital considerations into credit risk assessment for agricultural lending. It aligns natural capital risks and opportunities into business decision-making, enabling financial flows to be directed to the best-managed, most sustainable projects.
United Nations Environment Finance Initiative (UNEP FI), Natural Capital Finance Alliance (NCFA)
This report provides a step-by-step guide for financial institutions conducting a rapid natural capital risk assessment, with links to additional online resources. The guide was developed based on experience piloting the approach with banks across three countries: Colombia, Peru and South Africa.