This report is the second output of the joint NGFS-INSPIRE Study Group on Biodiversity and Financial Stability. The group was established to help central banks and financial supervisors fulfil their mandates in the face of financial risks stemming from biodiversity loss. The report is intended as a stocktake of the current context for central bank and financial supervisory action on biodiversity loss. It sets out the state of understanding on the linkages between biodiversity-related risks and financial stability, provides examples of emerging central bank and private finance activity, and identifies key themes, challenges and open questions. It will consider emerging options for action and research and set the stage for the Study Group’s more elaborated Final Report in early 2022.