The joint project between the UN Environment Programme Finance Initiative (UNEP FI) and Global Footprint Network to assess the financial materiality of ecological risk was launched at the UN Foundation in Washington DC on 17 October 2011. Opening remarks from Paul Clements-Hunt (Head of UNEP FI) and Susan Burns (Senior Vice President of Global Footprint Network) showed a clear commitment from both organisations to this potentially ground breaking project. Richard Burrett, of Earth Capital Partners, also gave an inspiring presentation detailing not only the importance of this project but also how investors currently perceive the financial relevance of natural resources.
It is clear that the tightening constraints on resources and their potential impacts on national economies are not included within current financial analysis. Yet such factors are thought to have growing implications for the long-term credit risk of many government bonds, especially those with long-dated maturities.
A host of financial institutions were in attendance at the launch and participated in a stimulating discussion around the evidence base to show that ecological risks are becoming material for economies and how key ecological data can be linked to the financial and economic indicators. This project will endeavour to shine a light on such questions to explore the role of natural resource accounting in strengthening risk models for government bonds.
Global Footprint Network and UNEP FI would like to thank all those who participated in the launch event and invite any other institutions who are interested to join the project.