More than 300 companies in 46 countries have signed up to publish nature-related financial disclosures in the next two years using the TNFD framework, in what is described as “a milestone moment for nature finance”.
Asahi Holding Group (which is getting its first Chief Sustainability Officer this year), AstraZeneca, Bunge, Carrefour, Iberdrola and Japan Airlines are among the 320 early adopters announced today by the Task force for Nature-related Financial Disclosures (TNFD).
“This first cohort includes leading publicly listed companies across geographies and industry sectors representing US$4 trillion in market capitalisation; over 100 financial institutions, including some of the world’s largest asset owners and managers, representing US$14 trillion in Assets under Management (AUM) as well as banks, insurers and other leading market intermediaries such as stock exchanges and audit and accounting firms,” the task force said.
Financial institutions committed to the scheme include Fidelity International (whose Chief Sustainability Officer Jenn-Hui Tan recently told CSO Futures about the organisation’s nature roadmap), as well as Commerzbank, London Stock Exchange Group, UBS and Bank of America.
"This is a milestone moment for nature finance and for corporate reporting," said David Craig, Co-Chair of the TNFD and former founder and CEO of Refinitiv. "This is a clear signal that investors, lenders, insurers and companies are recognising that their business models and portfolios are highly dependent on both nature and climate and need to be treated as both strategic risks and investment opportunities."
A watershed moment for nature finance
PwC estimates that 55% of global GDP (about US$58 trillion) is dependent on nature, yet nature action by companies remains limited. In December, CDP released data showing that only 38% of the 24,000 companies that use its platform for climate disclosures were reporting on their impacts on nature.
Nature-related disclosures are a way to start understanding and quantifying financial risks associated with nature and biodiversity loss – a first step before taking mitigation measures. The TNFD released its final recommendations in September last year, and although more work is needed to help companies define what is material in their local context, it’s clear that corporates are paying more and more attention to this topic.
Nature and biodiversity disclosures doubled among US-listed companies in the past year, and the commitment made by high-profile TNFD early adopters today will likely lead to more take-up in the coming months.
In an interview with CSO Futures last month, TNFD Technical Director Emily McKenzie explained that “the overall objective is not to perfect something now, but to begin a process whereby, year on year, the disclosures expand and improve and provide better insights on nature-related dependencies, impacts, risks and opportunities”.