Finance, Disclosure, and Systemic Environmental Risk
Finance, Disclosure, and Systemic Environmental Risk examines why environmental disruption has become a financial stability issue rather than a peripheral sustainability concern. The article explains how planetary-boundary pressures can affect asset values, credit quality, insurance markets, supply chains, infrastructure, regulation, and long-term growth. It evaluates the role of IFRS S1, IFRS S2, TNFD, nature-related disclosure, transition credibility, cumulative impacts, and the gap between firm-level materiality and Earth system risk. The article also includes a mathematical lens for modeling portfolio exposure, boundary pressure, and disclosure adequacy, along with Python and R workflows for portfolio-level systemic environmental risk scoring. The central argument is that disclosure must evolve from firm-level transparency toward decision-grade infrastructure for managing cumulative planetary risk.









