The Taskforce on Nature-related Financial Disclosures (TNFD) has unveiled a commitment from a consortium of 320 companies and financial institutions
According to ESG Today, this collective, representing a robust market capitalisation of $4tn, has pledged to initiate nature-related reporting adhering to the newly formulated TNFD guidelines.
The announcement, a highlight of the World Economic Forum’s Annual Meeting in Davos, Switzerland, signals a substantial shift towards standardised reporting mechanisms, focusing on nature-related governance, strategy, risk management, and objective-setting.
A noteworthy participant in this commitment is Norges Bank Investment Management (NBIM), the steward of Norway’s colossal $1.4tn oil fund. Carine Smith Ihenacho, NBIM’s Chief Governance & Compliance Officer, underscored the organisation’s long-standing commitment to acknowledging and addressing nature-related financial risks.
“Addressing nature-related financial risks has been a longstanding priority on our ownership agenda at Norges Bank Investment Management. As active contributors to the Taskforce on Nature-related Financial Disclosures (TNFD), we are committed to leveraging this tool to deepen our understanding of our portfolio’s nature-related impacts and dependencies, further reinforcing our responsible investment efforts in this important area,” Ihenacho remarked.
The unveiling of these commitments follows the release of TNFD’s conclusive recommendations for nature-related risk management and disclosure. This release culminates a comprehensive two-year process that commenced with the establishment of the TNFD in June 2021. The initiative builds upon the success of the Task Force on Climate-related Financial Disclosures (TCFD), aiming to shape future sustainability disclosure standards.
Notably, the International Sustainability Standards Board (ISSB) of the IFRS Foundation, which recently inaugurated its pioneering sustainability and climate reporting standards, has confirmed that the TNFD’s recommendations will guide its future standard-setting endeavours. Moreover, CDP, the global environmental disclosure platform, intends to synchronise its disclosure framework with the TNFD guidelines.
David Craig, Co-Chair of the TNFD and former founder and CEO of Refinitiv, highlighted the significance of this collective commitment, remarking on the evolving landscape of corporate reporting.
“As climate-related sustainability reporting goes mainstream through the new International Sustainability Standards Board (ISSB) standards and regulation in a growing number of countries, 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,” stated Craig.
This collaborative endeavour not only exemplifies the finance sector’s recognition of its integral role in fostering sustainability but also underscores the increasing impetus for companies to address and disclose nature-related financial risks and opportunities, paving the way for a more transparent and sustainable future.
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