Is operationalising natural capital risk assessment practicable?

Financial institutions are indirectly exposed to risks associated with the impacts and dependencies on natural capital ecosystem services of companies that they invest in, lend to, insure. This is particularly true for banks lending agriculture: a sector both significant critical capital. Bank vital source new finance sector, which essential achieve sustainable intensification targets. Yet current credit decision-making practice still based conventional financial management indicators, lacking any systematic assessment risks, especially those dependencies. Operationalising risk requires practicable indicators data evaluate most material given sub-sector geography, but it unclear what extent these available. We assess practicability dependency sources case study Australian sheep production. find at least moderately available 11 major this industry. Challenges remain in determining thresholds quantifying profitability.