LEAP-ing your environmental strategy forward by integrating nature

Insurers and financial institutions are increasingly recognizing the importance of nature in addressing regulatory, reputational, and financial risks, particularly as a credible climate strategy cannot ignore nature-related factors. Despite this, climate change remains the primary focus of environmental efforts, often sidelining nature. Integrating nature into financial strategies poses challenges, especially since most nature-related Dependencies, Impacts, Risks, and Opportunities (DIROs) are embedded within underwriting and investment portfolios, making them less visible and harder to manage. This raises key questions about the adequacy of current due diligence processes, the evolution of underwriting models to reflect growing nature-related risks, and whether institutions are seizing opportunities to innovate through products and services that both reduce risks and enhance environmental outcomes.