Key points are not available for this paper at this time.
ABSTRACT Nature and biodiversity loss have recently gained prominence as a critical dimension of environmental risk for the financial sector. Unlike climate change, integrating biodiversity considerations into financial decision‐making is far more intricate and methodologically heterogeneous. This paper presents a systematic literature review (SLR) of 22 peer‐reviewed studies published between 2011 and 2025, synthesizing the current state of knowledge on how financial institutions identify, assess, and manage nature‐related risks. The evidence reveals limited but increasing attention to biodiversity within banks, insurers, and asset managers, predominantly driven by regulatory developments, reputational concerns and internal capabilities. Empirical studies suggest that biodiversity loss can generate both physical and transition risks, with potential systemic implications for financial stability. At the same time, financial intermediaries are gradually developing tools and frameworks to integrate nature‐related risks into disclosure, risk management and investment strategies. This review identifies financial institutions as active players whose capital‐allocation decisions can accelerate the transition toward biodiversity conservation and outlines key priorities for future research.
Confalonieri et al. (Sun,) studied this question.