Initiative launched to help financial sector address nature-related risks

4th June 2021


Web transform taskforce on nature related financial disclosures launched credit istock 1222647141

Related Topics

Related tags

  • Reporting ,
  • Natural resources ,
  • Biodiversity ,
  • Global ,
  • Investment

Author

Nicola Stopps

The Taskforce on Nature-related Financial Disclosures (TNFD) has today been launched to support financial institutions and corporates in assessing and managing emerging risks and opportunities as the world looks to reverse biodiversity loss.

The market-led initiative will help organisations report on their vulnerability to risks such as new legal liabilities related to nature, and systemic loss of soil fertility.

This will enable corporates, investors, lenders and insurance underwriters to shift finance towards firms and projects that protect and enhance nature, building on the success of the Taskforce on Climate-related Financial Disclosures (TCFD).

A full technical scoping document for the initiative was also published today, while a summary report providing an overview of how the TNFD will work will be released soon.

This comes after research found that more than half of the world’s economic output is dependant on nature, and that nature-positive transitions could generate up to $10.1trn (£7.1trn) in annual business value and create 395 million jobs by 2030.

TNFD co-chair, David Craig, said: “Without urgent action, ongoing loss to biodiversity poses unprecedented risks for business, both now and in the future.

“Better nature-related data that enables informed decision-making by financial institutions and companies is how we will solve the global ecological crisis. Financial disclosures are essential to a market-based solution to nature loss.

“A properly functioning, informed market will price in risks appropriately, and be empowered to channel investments to more sustainable opportunities.”

The new framework will be tested and refined in 2022 before its launch and dissemination in 2023.

Preparatory work began in September 2020, supported by an Informal Working Group (IWG) and an Informal Technical Expert Group (ITEG), the latter co-chaired by Simon Zadek, chair of Finance for Biodiversity (F4B).

The TNFD will consist of approximately 30 members, with an equal representation of financial institutions, corporates and data/service providers, and will be informed by a diverse Stakeholder Group.

Zadek said: “After nine months of intense foundational work as co-chair of the ITEG, F4B is delighted to celebrate the start of TNFD’s important journey.

“With the support of the global financial and business community, international policy makers including the G20 and G7, standard-setting bodies, the TCFD, and development finance institutions, TNFD can meet its aim of making a major contribution to aligning financial flows and the global economy with nature-positive outcomes.”

Image credit: iStock

Subscribe

Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.


Transform articles

Facing the climate emergency challenge in local government

It’s well recognised that the public sector has the opportunity to work towards a national net-zero landscape that goes well beyond improving on its own performance; it can also influence through procurement and can direct through policy.

19th March 2024

Read more

The UK government’s carbon capture, usage and storage (CCUS) strategy is based on optimistic techno-economic assumptions that are now outdated, Carbon Tracker has warned.

13th March 2024

Read more

The UK government’s climate adaptation plans are ‘inadequate’ and falling ‘far short’ of what is required, the Climate Change Committee (CCC) has warned today.

13th March 2024

Read more

The UK’s net-zero economy grew 9% last year while delivering higher paid jobs than average and attracting billions of pounds in private investment, analysis by CBI Economics has uncovered.

28th February 2024

Read more

A consortium including IEMA and the Good Homes Alliance have drafted a letter to UK government ministers expressing disappointment with the proposed Future Homes Standard.

26th February 2024

Read more

Campaign group Wild Justice has accused the UK government of trying to relax pollution rules for housebuilders “through the backdoor”.

14th February 2024

Read more

Three-quarters of UK adults are concerned about the impact that climate change will have on their bills, according to polling commissioned by Positive Money.

13th February 2024

Read more

All major housing developments in England will be required by law to deliver at least a 10% increase in biodiversity under new rules that came into force today.

12th February 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close