Globally, financial services are well positioned to contribute to the transformation needed for sustainable futures and will be critical for supporting corporate activities that regenerate and promote biosphere resilience as a key strategy to confront the new risk landscape of the Anthropocene. While current financial risk frameworks focus primarily on financial materiality and risks to the financial sector, failure to account for investment externalities will aggravate climate and other environmental change and set current sustainable finance initiatives off course.
The planetary boundaries framework proposes quantified guardrails to human modification of global environmental processes that regulate the stability of the planet and has been considered in sustainability science, governance, and corporate management. However, the planetary boundary for human freshwater use has been critiqued as a singular measure that does not reflect all types of human interference with the complex global water cycle and Earth System.
