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Researchers, including Professor Khaled Hussainey from ����VR��Ƶ, are warning that a “research gap” related to biodiversity and nature is making it harder to fully understand the risk it presents and to tackle the issue.

The paper, , a collaboration between academics from Brunel University of London, ����VR��Ƶ and Kingston University London, has been published in Business Strategy and the Environment.

It states that biodiversity risk remains underrepresented in financial research compared to those related to climate change.

This has tangible consequences, such as investors struggling to assess exposure to biodiversity-related risks, regulators facing challenges in designing effective accountability mechanisms and society enduring the long-term cost of ecosystem degradation.

The reason for this is, as ecosystems deteriorate, the services they provide, for example, pollination, water purification, soil health, and climate regulation, are reduced, creating cascading effects across sectors, portfolios, and economies.

Addressing these gaps is therefore critical, not only for market stability but also to protect ecosystems and preventing harm to society.

Professor Khaled Hussainey from The Albert Gubay Business School at ����VR��Ƶ said, “People who work in finance have a duty to account for environmental impact in their decision-making, recognising that their investments can either contribute to ecological harm or foster sustainability. The principles of corporate social responsibility and ethical finance advocate for integrating biodiversity considerations into managerial decision-making, ensuring that economic activities do not exacerbate ecological harm. Financial institutions, investors, and policymakers must therefore adopt ethical frameworks that balance profitability with environmental stewardship, fostering long-term resilience and sustainability.”

The paper states, “More than a niche concern, biodiversity risk or more broadly, nature-related risk, is now widely recognized as a systemic financial risk capable of disrupting global markets, impairing asset values, and threatening macroeconomic stability. As ecosystems deteriorate, the services they provide, for example, pollination, water purification, soil health, and climate regulation, are diminished, creating cascading effects across sectors, portfolios, and economies.”

is a paper by Dang, NT., Nandy, M., Lodh, S. and Hussainey, K.