The IPR FPS + Nature: A Groundbreaking Scenario for Investors and Financial Institutions

The IPR FPS + Nature scenario is revolutionizing the way investors and financial institutions assess risks and opportunities in the face of nature-related policy changes. This integrated scenario provides a forward-looking view on how policy, technological, and social trends could impact key land use and energy-related value drivers. With the decline of nature leading to increased policy action, investors and companies are being urged to understand their impacts on nature and disclose them.

Government actions on nature are on the rise, with policies and regulations being introduced alongside climate action. The recent global biodiversity framework adopted by over 190 countries at the COP 15 summit in Montreal highlights the growing importance of nature-related policies. Companies and investors are now facing the challenge of incorporating nature-related risks into their strategies, with frameworks like the Taskforce on Nature-related Financial Disclosures guiding them in this process.

The impact of nature loss on the economy and financial sector is significant, with potential global GDP losses of USD 3 trillion annually by 2030 if ecosystem tipping points are crossed. The IPR FPS + Nature scenario includes key policy levers to support the nature transition, such as land protection, restoration, and nature markets.

Key findings from the scenario highlight the potential changes in food prices, energy transitions, emergence of nature-related goods and assets, and the impact on global supply chains. The scenario also outlines the importance of protecting biodiversity hotspots, restoring degraded ecosystems, and developing voluntary biodiversity credit markets.

Overall, the IPR FPS + Nature scenario provides a comprehensive outlook on how nature-related policies could shape the future of investments and financial institutions. It emphasizes the need for a proactive approach to understanding and mitigating nature-related risks in order to capitalize on emerging opportunities in a changing policy landscape.