Impact on nature
A change in the state of nature caused by an organisation’s activities, such as land-use change, pollution or resource extraction, which can be positive or negative.
Dependency on nature
The reliance of a business or economic activity on ecosystem services, such as water supply, pollination, soil quality or flood protection.
Nature-related risks
Potential threats posed to an organisation that arise from its and wider society’s dependencies and impacts on nature; they can be physical, transition or systemic risks (TNFD).
Pre-arranged finance
Money whose amount, trigger and delivery are agreed before a shock, so that it can be disbursed quickly and predictably when the shock occurs.
Protection gap
The share of economic losses from disasters that is not covered by insurance or other pre-arranged finance and so falls on households, firms and public budgets.
Contingent credit
A loan agreed before a disaster that can be drawn quickly once a pre-specified trigger, such as a declared state of emergency, is met.
Risk layering
Combining instruments so that cheaper sources of money cover frequent, low-severity losses and more expensive risk transfer is used only for rare, severe events (World Bank).
Disaster risk finance (DRF)
Pre-arranged financial strategies and instruments that give governments, firms and households timely access to funds after a disaster, combining instruments for events of different frequency and severity.
Biennial Assessment (BA)
The Standing Committee on Finance’s two-yearly report on climate finance flows, definitions and methods under the UNFCCC; the sixth edition covers flows to 2022.