Knowledge (XXG)

Natural risk

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plantations and logging, and this was made permanent in 2019. The moratorium is forecast to reduce Indonesia's economic growth and negatively affect other macroeconomic indicators such as gross national expenditure (GNE) and welfare. Sumatra, Indonesia's largest palm oil-producing region, is expected
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Nature risks can increase policy and regulatory intervention. As a result, in response to these risks, some sectors of the economy might have to face big shifts in asset values or higher costs of doing business for companies that generate negative impacts on nature. For example, in 2018 Indonesia's
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and sue them for such losses. These shifts in public sentiment can result in lower brand value, loss of customer base and profits or further increases in insurance premiums (in the case of legal action). This trend of social awareness on nature-related issues is on the rise. For instance, in 2010,
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As consumers and the market react to nature risks, leading to supply and demand patterns shifted, novel products/services, technologies and business models emerge and may disrupt the established business community. For example, meat and fish alternatives, including synthetic proteins, will
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increasingly replace traditional meat products. The demand for cow products will decrease by 70% by 2030, and by 80–90% by 2035, with a total cost in excess of $ 100 billion to meat producers and their supply chains.
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Greenpeace launched a campaign against Nestlé's KitKat brand to raise awareness about the brand's sourcing of palm oil from deforested Indonesian rainforests. Nestlé's stock subsequently decreased by 4%.
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on which human societies rely for their functioning. An example is tropical deforestation. It is a key source of nature risk for sectors that either have an impact or dependency on tropical forests.
43:. The loss of nature can also contribute to systemic geopolitical risk because nature's assets and services, such as clean air, plentiful fresh water, fertile soils, a stable climate, provide vital 39:
that are related to the loss of natural assets. They may impact businesses or economies by impacting directly on operations or by negatively affecting society in a way that then creates
184: 309: 228:"Indonesia's Moratorium on Palm Oil Expansion from Natural Forests: Economy-Wide Impacts and the Role of International Transfers" 16: 277: 57:
president issued a three-year moratorium on clearing primary forests and peatlands for land-use activities such as
259: 112: 107: 185:"Policy forum: Institutional architecture and activities to reduce emissions from forests in Indonesia" 162: 102: 142: 88: 74: 239: 199: 97: 304: 163:"Nature Risk Rising: Why the Crisis Engulfing Nature Matters for Business and the Economy" 70: 36: 132: 127: 93: 69:
Customers, clients, and the wider public will hold many companies accountable for any
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to be worst affected, with a predicted -2% deviation from its baseline GDP by 2030.
44: 204: 40: 122: 244: 227: 58: 278:"Deforestation-driven reputation risk could become material for FMCGs" 21: 226:
Yusuf, Arief; Roos, Elizabeth; Horridge, Jonathan (September 2018).
15: 24:, 2018. Almost all of Europe's originsl forests have been removed 183:
Tacconi, Luca; Zahrul Muttaqin, Muhammad (July 20, 2019).
8: 260:"Rethinking food and agriculture 2020-2030" 243: 203: 154: 7: 14: 1: 310:Works about natural disasters 205:10.1016/j.forpol.2019.101980 192:Forest Policy and Economics 331: 232:Asian Development Review 35:are risks recognized in 285:Chain Reaction Research 113:Financial risk modeling 25: 108:Risk management tools 19: 245:10.1162/adev_a_00115 170:World Economic Forum 172:. January 19, 2020. 103:Key risk indicators 51:Examples of impacts 26: 266:. September 2019. 143:Reputational risk 89:Crisis management 75:biodiversity loss 20:Deforestation in 322: 289: 288: 282: 274: 268: 267: 256: 250: 249: 247: 223: 217: 216: 214: 212: 207: 189: 180: 174: 173: 167: 159: 98:Natural disaster 330: 329: 325: 324: 323: 321: 320: 319: 295: 294: 293: 292: 280: 276: 275: 271: 258: 257: 253: 225: 224: 220: 210: 208: 187: 182: 181: 177: 165: 161: 160: 156: 151: 85: 71:natural capital 53: 37:risk management 12: 11: 5: 328: 326: 318: 317: 312: 307: 297: 296: 291: 290: 287:. May 9, 2019. 269: 251: 218: 175: 153: 152: 150: 147: 146: 145: 140: 135: 133:Valuation risk 130: 128:Political risk 125: 120: 115: 110: 105: 100: 94:Natural hazard 91: 84: 81: 80: 79: 67: 63: 52: 49: 13: 10: 9: 6: 4: 3: 2: 327: 316: 313: 311: 308: 306: 303: 302: 300: 286: 279: 273: 270: 265: 261: 255: 252: 246: 241: 238:(2): 85–112. 237: 233: 229: 222: 219: 206: 201: 197: 193: 186: 179: 176: 171: 164: 158: 155: 148: 144: 141: 139: 136: 134: 131: 129: 126: 124: 121: 119: 116: 114: 111: 109: 106: 104: 101: 99: 95: 92: 90: 87: 86: 82: 76: 72: 68: 64: 60: 55: 54: 50: 48: 46: 42: 38: 34: 30: 29:Natural risks 23: 18: 284: 272: 263: 254: 235: 231: 221: 209:. Retrieved 195: 191: 178: 169: 157: 138:Moral hazard 118:Country risk 45:public goods 41:market risks 33:nature risks 32: 28: 27: 73:decline or 299:Categories 198:: 101980. 149:References 123:Model risk 264:RethinkX 211:March 7, 83:See also 59:palm oil 305:Nature 22:Europe 281:(PDF) 188:(PDF) 166:(PDF) 315:Risk 213:2021 96:and 240:doi 200:doi 196:108 31:or 301:: 283:. 262:. 236:35 234:. 230:. 194:. 190:. 168:. 248:. 242:: 215:. 202::

Index


Europe
risk management
market risks
public goods
palm oil
natural capital
biodiversity loss
Crisis management
Natural hazard
Natural disaster
Key risk indicators
Risk management tools
Financial risk modeling
Country risk
Model risk
Political risk
Valuation risk
Moral hazard
Reputational risk
"Nature Risk Rising: Why the Crisis Engulfing Nature Matters for Business and the Economy"
"Policy forum: Institutional architecture and activities to reduce emissions from forests in Indonesia"
doi
10.1016/j.forpol.2019.101980
"Indonesia's Moratorium on Palm Oil Expansion from Natural Forests: Economy-Wide Impacts and the Role of International Transfers"
doi
10.1162/adev_a_00115
"Rethinking food and agriculture 2020-2030"
"Deforestation-driven reputation risk could become material for FMCGs"
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