The Southeast Asia Nature Risk Toolkit is a comprehensive resource designed to help financial institutions identify, assess, and manage nature-related financial risks within the Southeast Asian region. It provides a structured framework for lenders, investors, and insurers to build internal capacity and address exposures to natural capital degradation. The toolkit is particularly relevant for finance professionals seeking to align their risk management processes with the Taskforce on Nature-related Financial Disclosures (TNFD) LEAP approach using region-specific data.

Organisation behind the tool

The toolkit is a joint initiative developed by Global Canopy, the Asia Investor Group on Climate Change (AIGCC), the UN Environment Programme World Conservation Monitoring Centre (UNEP-WCMC), and the UN Environment Programme Finance Initiative (UNEP FI). It received additional support from Proforest and was funded by the Swiss State Secretariat for Economic Affairs (SECO) and the AIGCC.

What the tool does

The toolkit provides a suite of resources to facilitate granular nature risk assessments, including:

• ENCORE plug-and-play workbook: A spreadsheet-based tool for screening material dependencies and environmental pressures with specific data for Indonesia, Malaysia, Thailand, and Viet Nam.
• Catalogues of tools and datasets: A curated list of over 50 tools and 70 datasets filterable by geography, sector, and use case.
• Nature-related physical risk library: Resources to help users translate environmental changes into specific financial impacts and risk pathways.
• Country-level overviews: Summaries of the regulatory and private sector nature finance landscapes in the four focus countries.
• Case studies and guidance: Step-by-step support for applying the data to portfolio management and investment decisions.

Target audience

The primary audience includes financial institutions operating in or exposed to Southeast Asia, specifically lenders, investors, and insurers. It is also relevant for sustainability professionals and risk managers involved in ESG reporting and scenario analysis.

Relevance to finance professionals

The toolkit can be applied to various areas of financial decision-making:

• Risk assessment: Screening for physical and transition risks related to local ecosystem degradation.
• ESG analysis: Utilising region-specific metrics to support TNFD-aligned reporting and disclosures.
• Market/commodity insights: Assessing dependencies in sectors such as agriculture, fisheries, and infrastructure that rely on regional natural assets.
• Investment context: Enhancing portfolio management and client engagement through a deeper understanding of country-level nature risk profiles.