Nature loss must be treated as a serious economic threat, not an environmental side issue, according to a new report co-authored by a Government Actuary’s Department expert.
Georgina Bedenham, Head of Climate Risk and Disaster Risk Finance at GAD, contributed to Tipping into the Wild Unknown, the latest report in the Institute and Faculty of Actuaries’ Planetary Solvency series.
The report argues that nature acts as critical infrastructure, supporting food systems, water supply, health, climate regulation and wider economic activity.
It warns that while climate risk has moved up the agenda for governments, regulators and financial institutions, nature risk is still largely missing from many of the models and scenarios used to judge long-term economic resilience.
Bedenham said: “We need to embrace the uncertainty because integrating nature into decision-making is no longer optional.”
The report highlights risks already emerging through soil degradation, water stress and pollinator decline.
It also warns of acute shocks such as failures in major food-producing regions and trade disruption, both of which could feed directly into price volatility, inflation and economic instability.
The authors also point to the growing risk of zoonotic diseases, where deforestation and land-use change increase the chance of diseases jumping from animals to humans.
The report says Covid-19 showed how quickly such shocks can become global economic and social crises.
Looking further ahead, it warns that ecosystem tipping points, including coral reef collapse or widespread pollinator loss, could cause damage that is effectively irreversible on human timescales.
The report says nature risk is now a financial and societal risk, affecting supply chains, health outcomes, credit risk, market risk and long-term investment.
It argues climate-only modelling is no longer enough because climate change and biodiversity loss are deeply connected.
Bedenham said the report encourages actuaries to engage with emerging biodiversity metrics and new tools for measuring nature-related risk.
It also calls for more use of narrative and qualitative risk approaches alongside traditional financial modelling.
Copyright © 2026 Energy Live News LtdELN