Upcoming legislation highlights the need to quantify the effect of non-financial risk on insurance and financial portfolios. The scope is not restricted to climate risk but extends to the broader category of ESG risk, crucially including biodiversity risk. These developments are making it crucially important for the insurance and pensions industry to be able to stress test their insurance and financial portfolios for ESG risk. This project aims to quantify the impact of ESG risk on insurance and financial portfolios by developing Integrated Assessment Models (IAMs) that can serve as a basis for nature-related ESG risk stress testing in the insurance industry and by analysing the policy implications of nature-related ESG risk for risk management, portfolio choice, pricing, and product development to assess which products an insurer must offer towards the future as part of the climate transition.