In this DLD Nature talk, Allianz CEO Günther Thallinger discusses the intricate relationship between finance and nature, emphasizing the crucial role of financial institutions in managing environmental risks and damages.
Thallinger illustrates how environmental changes can impact financial systems using examples such as the destruction of forests by the bark beetle and the human-driven pollination process.
These changes can escalate costs, disrupt supply chains, and necessitate the re-evaluation of assets, leading to economic complications.
Currently, the value of nature is not properly reflected in the economy, Thallinger notes. “You need to integrate the full set of information, and for this you need to have the entire economy to properly report.”
The lack of data also leads to a lack of market dynamics, he points out. “Today the markets cannot be efficient because they only have the financial information. The nature information is completely missing.”
Watch the video for insights into climate change risks, the need for regulation and pricing in the true value of nature for the global economy.
