Nature loss is not only an environmental concern, but also an emerging source of economic and financial risk. As critical ecosystems degrade, so too does the natural capital that underpins production, supply chains, and long-term economic stability. In Canada, where the economy remains resource-intensive and nature-dependent, these risks are particularly pronounced. Recent analysis suggests that nature’s ongoing decline puts approximately US$259 billion (or 11% of Canada’s GDP) at risk.
Historically, economic and financial decision-making has often overlooked our reliance on the natural world, leaving nature-related dependencies, impacts, and risks poorly measured, unpriced, and insufficiently managed. This creates important blind spots for businesses, investors, and policymakers, allowing material risks to accumulate across operations, supply chains, and financial markets. Left unaddressed, these risks can extend beyond individual firms, with broader implications for economic resilience and financial stability.
The Case for Nature-related Financial Disclosures in Canada argues that nature-related financial disclosures (NFDs) can help address this blind spot. These disclosures help businesses better understand, manage, and communicate nature-related drivers of risks and opportunities, supporting operational efficiency, innovation, and investment. Standardized frameworks, such as the Taskforce on Nature-related Financial Disclosures (TNFD) Recommendations, aim to provide more reliable and comparable information for decision-makers. Despite the case for action, corporate adoption of NFDs remains limited. More fundamentally, many organizations face a systemic readiness gap in implementing NFD frameworks. This gap stems from: (1) policy and regulatory uncertainty, (2) an underdeveloped data and measurement infrastructure, and (3) limited institutional understanding of nature-related assessments and disclosure (i.e., ‘nature intelligence’).
Without clear policy direction, stronger data and measurement systems, and greater institutional capacity, nature-related issues will continue to be overlooked in economic and financial decision-making. As these risks grow, closing the gap will require a thoughtfully sequenced approach supported by targeted research and practical capacity-building.
