Nature at risk, finance at stake: a systematic literature review of biodiversity risk in finance research

Biodiversity-related financial risk is increasingly recognised not only as a market concern but as an ethical and systemic imperative for businesses and financial institutions. This systematic literature review synthesises 103 peer-reviewed studies to examine how biodiversity risk is conceptualised, measured, and integrated within financial research. While awareness of biodiversity as a systemic financial risk is expanding, the field remains theoretically fragmented and methodologically uneven. Four dominant themes emerge: financial materiality, visibility and recognition, governance and accountability, and levels of analysis. Building on these findings, the review introduces an eco-financial transmission framework that connects biodiversity loss to financial exposure through valuation, governance, and disclosure channels. It further underscores the moral responsibility of financial actors to embed biodiversity into investment practices, ESG strategies, and regulatory design. By integrating ecological economics with ethical finance, this review advances a conceptual foundation for a financial system that not only mitigates biodiversity risk but supports long-term ecological resilience.