UK Economy's Hidden Infrastructure: Nature Loss Threatens £1.1tn

The UK economy relies heavily on nature, and its degradation poses significant financial risks. According to new data, loss of nature could disrupt up to £1.1tn across sectors like real estate, construction, agriculture, and retail.

Nature extends beyond the UK's domestic borders, with the country's construction and retail industries relying heavily on imports from overseas supply chains that require healthy ecosystems for water supply and flood mitigation.

The Bank of England's Prudential Regulation Authority should integrate nature loss into climate-risk supervision, aligning with NGFS guidance and ECB-style enforcement. The health of the UK economy depends on nature, and as a guardian of financial stability, the BoE cannot afford to overlook this connection.