Nature and financial institutions in Africa: a first assessment of opportunities and risks

Africa’s climate resilience can be strengthened by redefining its economic model to leverage natural capital and designing financial systems to redirect critical nature-based investments. This report applies, for the first time, a quantitative risk assessment and stress-testing framework for financial institutions to the opportunities and risks relating to nature. The analysis in this report extends this approach to quantify how the value of financial assets would change under scenarios of future action on climate and nature. The scenarios define a series of plausible narratives and goals, and the assessment considers how the actions needed to reach those goals would impact the performance of financial portfolios.