Climate change and nature loss are deeply interconnected. Temperature rises, changes in
precipitation patterns and extreme weather events have a range of impacts on nature. Furthermore,
the decline of nature affects weather patterns and the resilience of ecosystems in the face of
impacts from climate change, as well as their ability to capture and store carbon and to provide
benefits to society (Kuhlow et al, 2021; Pörtner et al, 2021).
Despite their deep interconnections, climate change and nature have historically been discussed
separately: the United Nations Framework Convention on Climate Change (UNFCCC) focused on
global warming, and broader nature loss themes covered by Conventions on Biological Diversity
(CBD) and to Combat Desertification (UNCCD).
In the financial sector, the risks and financial implications of climate change and the degradation of
nature are also largely tackled as independent issues. Institutions initially focused on addressing the
challenges of managing climate-related risks and the transition to a net-zero economy, given the
increasing prominence of this agenda since the Taskforce for Climate-related Financial Disclosure
(TCFD) published its recommendations in 2017.