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Quantifying firm-level risks from nature deterioration

Ricardo Cris'ostomo

Published 2025 in Unknown venue

ABSTRACT

We estimate the loss of value that companies might suffer from nature overexploitation. We find that global equities shed 26.8% in a scenario of unabated nature decline, while the worst-performing firms lose ~75% of their value. Our risk framework considers five environmental hazards: biodiversity loss, land degradation, climate change, human population and nature capital. We also introduce two metrics to assess nature-related risks: a Country Degradation Index that tracks the damage caused by environmental hazards in specific territories, including nonlinear dynamics and tipping points; and a Nature Risk Score that summarizes the risk that companies face due to the decline of nature and its services.

PUBLICATION RECORD

  • Publication year

    2025

  • Venue

    Unknown venue

  • Publication date

    2025-01-24

  • Fields of study

    Business, Economics, Environmental Science

  • Identifiers
    arXiv 2501.14391
  • External record

    Open on Semantic Scholar

  • Source metadata

    Semantic Scholar

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