On 25 and 26 June, CETEx was pleased to join the faculty for the inaugural European University Institute Florence School of Banking & Finance (EUI-FBF) executive training course on Managing Nature-Related Financial Risks, held at the EUI premises in Florence, Italy.
As the financial implications of biodiversity loss, ecosystem degradation and the breach of planetary boundaries become increasingly evident, central banks and supervisors are being asked to consider nature-related risks within their mandates. This two-day course brought together central bankers, financial supervisors, academics and civil society to build a shared, policy-relevant understanding of how to identify, assess and manage these risks. This was one of the most diverse cohorts the School has hosted to date, with participants spanning nearly ten countries across three continents.
Grounding the discussion in science and economics
The programme opened with a session grounding participants in natural science and ecosystem dynamics, before turning to how economic activities depend on ecosystem services and how nature loss transmits into credit, market and operational risk for the financial sector. Participants were introduced to ENCORE as a practical tool for identifying nature dependencies, followed by a case study on ecosystem restoration and financing solutions. The first day closed with a session on the latest developments in forward-looking nature scenarios and their use by central banks.
Translating research into supervisory practice
The second day moved from concepts to current practice. Sessions covered:
- Key insights from the CETEx report on how EU credit institutions have approached the assessment of nature-related risks between 2020 and 2024.
- The latest supervisory developments in assessing nature-related economic and financial risks, based on a recent NGFS note.
- A closing panel on the challenges, pathways and way forward for the financial sector on nature-related risk.
Throughout, the course highlighted the practical obstacles that remain – data limitations, evolving regulatory expectations, and the methodological gaps involved in translating ecological impacts into financial risk metrics.
Bringing science and finance into the same room
A particular highlight of the course was bringing together faculty and participants from the natural sciences alongside those from finance and economics to build directly on each other’s knowledge over the two days, a dynamic that organisers hope will shape how the agenda develops from here.
Closing reflection
We are grateful to our colleagues at EUI-FBF – particularly Pierre Schlosser, Giorgio Falchi, María del Carmen Sandoval Velasco and Noemi Epoté — for bringing together such a thoughtful and diverse group, and to all the faculty and participants who made the two days such a rich exchange. We look forward to seeing where this first cohort takes the conversation next.
