Finance ministers from the Group of Seven (G7) of the largest economies have endorsed the launch of the new Taskforce on Nature-related Financial Disclosures (TNFD). TNFD is a new global market-led initiative which aims to provide financial institutions and corporates with a complete picture of their environmental risks and opportunities. TNFD will deliver a framework for organisations to report and act on evolving nature-related risks, building on the success of the Task Force on Climate-related Financial Disclosures (TCFD)....

Image: Jonathan Glynn Smith New market-led global initiative aims to provide financial institutions and corporates with a complete picture of their environmental risks and opportunities. Two Co-Chairs announced to lead the Taskforce: David Craig, CEO of Refinitiv and Group Leader of Data & Analytics Division at London Stock Exchange Group (LSEG), and Elizabeth Maruma Mrema, Executive Secretary of the UN Convention on Biological Diversity (CBD). Taskforce commits to delivering a framework by 2023 for organisations to report and act on evolving nature-related risks, to support a shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes. Major financial institutions and multinational corporates have endorsed the launch of a new market-led Taskforce on Nature-related Financial Disclosures (TNFD), which will support business in assessing emerging nature-related risks and opportunities. More than half of the world’s economic output – US$44tn of economic value generation – is moderately or highly dependent on nature1. The recorded extinction of 83% of wild mammals and 50% of plants therefore represents significant risk to corporate and financial stability2. Action for nature-positive transitions could generate up to US$10.1 trillion in annual business value and create 395 million jobs by 20303.A report titled ‘Nature in Scope’, published today, describes how the initiative will deliver a framework for organisations to report and act on evolving nature-related risks, in order to support a shift in global financial flows away from nature-negative outcomes and towards nature-positive outcomes. A complementary report also sets out the proposed technical scope for the TNFD.Through an inclusive approach, the initiative aims to consult with a variety of stakeholders from all regions – to develop and build on voluntary, consistent disclosures to help corporates, investors, lenders and insurance underwriters manage nature-related risks, such as new legal liabilities and systemic loss of soil fertility.In its first year, the TNFD aims to build upon the success of the Task Force on Climate-related Financial Disclosures (TCFD), which has become instrumental in mainstreaming the issue of climate-related financial risks. The TNFD’s framework for nature-related risks will complement the TCFD’s climate-related framework, to give companies and financial institutions a complete picture of their environmental risks. Through its framework, the TNFD will support organisations to report and act on both their nature-related risks. The framework will be tested and refined in 2022 before its launch and dissemination in 2023.The initiative to bring together a Taskforce on Nature-related Financial Disclosures was first announced in July 2020. Kicking off its work in September 2020, an Informal Working Group, comprised of 74 Members across 24 countries – including financial institutions, corporates, governments, regulators, multilaterals, NGOs and consortiums – have worked to propose practical recommendations for the scope and workplan of the TNFD, which is released today. This informal group was ably co-chaired by market-leaders: Banorte, BNP Paribas and the Green Finance Institute.Following the completion of this preparatory phase, two Co-Chairs of the TNFD have been announced: David Craig, CEO of Refinitiv and Group Leader of Data & Analytics Division at London Stock Exchange Group (LSEG), and Elizabeth Maruma Mrema, Executive Secretary of the United Nations Convention on Biological Diversity (CBD).The Taskforce will consist of approximately 30 members, with an equal representation of financial institutions, corporates and data/service providers from developed and emerging markets. It will be informed by a diverse Stakeholder Group. ‟We are proud to be contributing to TNFD efforts to set reporting standards for biodiversity and natural capital we rely on for our economies and our entire life. A commonly accepted nature-related data, metrics and methodologies framework to report risks and dependencies will strongly support the inclusion of nature in financial decision-making and investment, which is crucial to steer finance towards a nature-positive, equitable and carbon neutral future.” David Álvarez García, CEO of Ecoacsa Elizabeth Maruma Mrema, Co-Chair of the TNFD: “Science and economists are clear: nature is too big to fail. The health of the ecosystems on which we, and our economies, depend is deteriorating more rapidly than ever. Over the next few years we will work with Taskforce members, and other stakeholders, to design a framework that can be impactful and ultimately practical to companies and financial institutions. We encourage a wide range of financial institutions and corporates to participate in the TNFD and to become early adopters of the TNFD framework when it launches in 2023.”Fellow TNFD Co-Chair, David Craig: “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.”Deputy Governor of the Banque de France, Sylvie Goulard: “For too long we took natural resources for inexhaustible and did not look at the consequences of human action on the planet. Climate change and the rapid loss of biodiversity invite us to transform our societies and economies, which means that finance needs to be transformed as well. The TNFD, a new global initiative, aims to give the finance sector a complete picture of environmental risks. The TNFD’s work on nature-related risks will be an important complement to the work already done on climate-related risks. Biodiversity is a systemic challenge and having a global platform for collaboration across private actors, international organisations, public authorities and NGOs is essential. The TNFD will support the development of more reliable and comparable nature-related data, which is critical to promote sustainable investments.”Global Environment Facility CEO and Chairperson, Carlos Manuel Rodriguez: “Mainstreaming biodiversity into the financial sector is one of the prerequisites to reversing nature loss. The Global Environment Facility is a proud anchor investor in the TNFD and I have great expectations for this initiative. Helping companies, investors, and financial institutions to measure and address financial risks derived from biodiversity loss will help redirect financial flows into nature-positive investments. We need this kind of transparency to underwrite the changes the planet needs, both in the short and long-term.”CEO of BNP Paribas, Jean-Laurent Bonnafé: “Collective action is needed to help protect our natural ecosystems and stop their degradation. BNP Paribas has already taken commitments to preserve biodiversity, but common and applicable standards are needed to leverage the power of finance for nature. The TNFD is key in convening market participants towards such standards.”CEO of AXA Group, Thomas Buberl: “We view the biodiversity challenge as a natural extension of our climate efforts, since the two crises are interconnected. Having supported the TCFD since its launch, we know how strategic reporting frameworks can be; this is why we called for the creation of the TNFD in 2019. Today we are proud to support its launch, and it is our hope that the TNFD will develop the risks & opportunities framework that corporates and investors need to support nature-based solutions.”The Minister for Pacific and the Environment at the Foreign, Commonwealth & Development Office (UK), Rt Hon Lord Goldsmith: “If we are to halt the destruction of the natural world, we urgently need financial decision making and investments to take account of nature. The launch of the Taskforce for Nature-related Financial Disclosures (TNFD) marks an important milestone in this process, building a framework to help lenders and investors make informed decisions that are aligned with climate and the natural environment. Its launch is also an important milestone in the delivery of the UK government’s Green Finance Strategy. We have supported this market-led initiative from its very inception and commend all the stakeholders involved in persevering against all odds, and putting in so much time and effort towards reaching this stage. We welcome the two excellent and committed co-chairs and look forward to building a successful, international, market-ready framework.”MD and CEO, YES BANK, Prashant Kumar: “Incorporating nature-related risks into financial decisions is important to safeguard future investments and respond to the clarion call of protecting the natural ecosystems. Sustaining our current ambitions of growth and alleviating the damages caused to biodiversity, requires a better alignment of technology, investments, and policies with the needs of nature. TNFD will provide the much-needed framework to mitigate the risks and leverage the emerging opportunities arising out of the shared journey to restore planet’s once-rich natural capital. YES BANK is proud to be associated with TNFD and we continue our support to this global endeavor of mobilizing finance towards nature-positive outcomes.”Head of Sustainability at H&M Group, Leyla Ertur: “Biodiversity and variety of life on earth is crucial to sustain healthy and functional ecosystems. It is only through collaborations that we can solve our global challenges within the loss of nature, and we believe that this joint taskforce on nature-related financial disclosure will play an important role for including biodiversity into our industry. We are happy to use our size and scale to transform our industry for the better.”The Minister of Ecological Transition (France), Barbara Pompili: “The challenge of biodiversity and nature preservation is crucial. We need corporate and financial institutions to take their parts. Yet, we lack unified definitions, standards and metrics to acurately and thoroughly embrace nature preservation. The TNFD will constitute a. Important step to start properly addressing at global level biodiversity-related risks and impacts.”Deputy Prime Minister and the Minister of Agriculture, Nature and Food Quality of the Kingdom of the Netherlands, Carola Schouten: “Recent reports (for example by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services) show the threats that nature and the global biodiversity face due to our current economic system. We have a responsibility towards future generations to leave them a healthy and habitable planet. Therefore, things need to change. I believe that the global framework that will be developed by the Taskforce Nature-related Financial Disclosures (TNFD), will accelerate the transition towards a nature-inclusive financial sector and thus society. The Netherlands is very well aware of the need for TNFD and will keep supporting it.”Notes[1] WEF: Nature Risk Rising: Why the Crisis Engulfing Nature Matters for Business and the Economy.[2] PNAS: The biomass distribution on Earth.[3] WEF: New Nature Economy Report 2: The Future of Nature and Business.For further information please contact the TNFD press office:tnfd@mcsaatchi.com Rory Anderson: 07901 332851 / rory.anderson@mcsaatchi.com Comparte Share on facebook Share on twitter Share on linkedin Share on email...

Ecoacsa Reserva de Biodiversidad and Universidad Politécnica de Madrid (UPM) have conducted an assessment across the IBEX 35 on how they publicly reported biodiversity-related information in 2019. The main conclusions and results of the analysis have been compiled in the report Nature in the Spanish stock exchange. To what extent is biodiversity relevant to the IBEX 35? The results of the 2019 biodiversity corporate performance index on reporting and disclosure of the IBEX 35 show that biological diversity is a material issue for 17 companies (48,6%). By activity sector, energy has obtained the highest score based on the sum of eight indicators taken into account to assess the correct integration of biodiversity by Spanish listed companies’ reporting and disclosure, with 53%. This sector is followed by basic materials industry (24%), consumer goods (22%), consumer services (18%), real state services (15%), finance services (13%) and technology and communications (12%).The methodology followed to followed to conduct the analysis has been developed by Endangered Wildlife Trust (EWT) in the framework of the Biodiversity Disclosure Project, which is based on publicly available data (sustainability reports published in the Spanish Stock Market Commission, biodiversity reports, websites)....

The European Commission has adopted an ambitious and comprehensive package of measures to help improve the flow of money towards sustainable activities across the European Union. By enabling investors to re-orient investments towards more sustainable technologies and businesses, measures adopted will be instrumental in making Europe climate neutral by 2050, and they aim at making the EU a global leader in setting standards for sustainable finance. The package is comprised of an EU Taxonomy Climate Delegated Act, a new Corporate Sustainability Reporting Directive and six Amendments to Delegated Acts on investment and insurance advice, fiduciary duties, and product oversight and governance....

The European Financial Reporting Advisory Group (EFRAG) has released the report Proposals for a relevant and dynamic EU Sustainability Reporting Standard-Setting, in the framework of the preparatory work for the elaboration of possible EU non-financial reporting standards in a revised EU Non-Financial Reporting Directive. This report proposes a roadmap for the development of a comprehensive set of EU sustainability reporting standards. ...

The Eurosystem central banks – the 19 national central banks of the euro area countries and the European Central Bank (ECB) – have defined a common stance for applying sustainable and responsible investment principles in the euro-denominated non-monetary policy portfolios that they each manage under their own responsibility. ...

Trading floor of the Palace of Madrid Stock Exchange. Image: Madrid Stock Exchange  Biodiversity loss is recognised as a planetary emergency, as it is occurring at rates unprecedented in human history according to recent landmark reports on the state of global biodiversity and ecosystem services and global risks. Given the increasing focus on biodiversity, public policies at national, regional and global scale, as well as the investment community and sustainability-oriented customers are demanding more transparency from business sector in terms of biodiversity-related issues disclosure and reporting.  What is the situation of the IBEX 35 listed companies in this regard? To what extent is biodiversity a relevant or potentially relevant issue for them? How are they responding to the risks posed by their dependencies and impacts on biodiversity? To shed light on these questions, Ecoacsa Reserva de Biodiversidad and the Endangered Wildlife Trust (EWT) have signed a Collaborative Project Agreement (CAP) to assess the performance of all IBEX 35 with respect to the integration of biodiversity into their operations. The aim of this project is to evaluate the level of awareness of the importance of biological diversity incorporation into activities, plans and strategies of the selective IBEX 35, to identify key gaps and strengths with regards to biodiversity risk and performance disclosure in Spain. Ecoacsa will conduct the assessment along with Polytechnic University of Madrid according to a transparent methodology developed by the EWT, based on publicly available data, including corporate websites, annual reports such us annual integrated reports and sustainability reports. This initiative takes place within the Biodiversity Disclosure Project (BDP), supported by the National Biodiversity and Business Network (NBBN), which was established by the EWT in 2013 and is member of the  Global Partnership for Business and Biodiversity (GPBB) of the Convention on Biological Diversity (CBD). The Biodiversity Disclosure Project is a framework that provides companies with a practical avenue through which to consolidate and report annually on their impacts and dependencies on biodiversity a standardised and comparable manner. Ebro river landscape. Image: Pixabay.com Credible and unbiased information One of the BDP´s outputs is the Biological Diversity Protocol (BD Protocol), developed in close collaboration with a wide range of stakeholders and  designed as a comprehensive biodiversity impact accounting and reporting framework that can help produce the credible and unbiased information needed for various biodiversity-related applications, from site management to disclosure. The BD Protocol helps companies consolidate all their biodiversity impact information across their operations and value chains. This process involves several key steps, from developing and managing a biodiversity impact inventory according to the appropriate organisational and value chain boundaries, identifying and determining material biodiversity impacts to disclosing or reporting on an organisation’s impacts on biodiversity. The information produced is also useful to stakeholders, investors, policy makers and non-governmental organisations as it provides the evidence needed to make informed decisions. Improving the biodiversity disclosure of reporting organisations will enable benchmarking with peers across and within industries, pushing for continuous improvement to minimise risks, reduce costs and seize new opportunities. While the GHG Protocol Corporate Accounting and Reporting Standard (i.e. the GHG Protocol) was the benchmark standard for the vision and structure of the BD Protocol, it is aligned to the Natural Capital Protocol. It helps provide biodiversity-specific guidance to measuring changes in the state of natural environment, by providing guidance on how to measure change in biodiversity components impacted by business. Context Biodiversity – the essential variety of life forms on Earth – is at serious risk with over one million species threatened with extinction and its continued decline in every region of the world, significantly reducing nature’s capacity to underpin economic activity and contribute to people’s well-being. This ecological crisis is widely recognised by landmark reports on the state of global biodiversity and ecosystem services (IPBES, 2019) and global risks (Global Risk Report 2020 and Nature Risk Rising by World Economic Forum) rating biodiversity loss as “the second most impactful and third most likely risk for the next decade” and calling for more effective action from all economic and social agents to conserve biodiversity. To a lesser or a greater extent, all businesses affect and rely on biodiversity, directly and indirectly, and the many key ecosystem services it provides, for example, in the form of nutrient cycling, carbon sequestration, pest regulation and crops pollination, flood attenuation, erosion control, sustain agricultural productivity and many others. Biodiversity underpins economic development, but it is threatened globally and its ability to continue to provide the goods and services that supports economies and societies is failing. The biodiversity loss affects society as a whole, and in particular those companies that are highly dependent on the secure supply of a number of nature-dependent commodities and other resources that biological diversity provides. Understanding risks and opportunities associated to dependencies and impacts of business sector on biodiversity is increasingly recognized as a key sustainability factor for many organisations as they are explicitly referred to play their part in high-level global agreements and national and regional regulations by managing biodiversity better and reducing their footprint on it. Examples of the latter are the Sustainable Development Goals of the 2030 Agenda for Sustainable Development, the Aichi Targets of the Strategic Plan for Biodiversity 2011-2020 of the Convention of Biological Diversity (currently negotiating the post-2020 global biodiversity framework), and the European Union Green Deal.   By assessing the biodiversity mainstreaming performance of the 35 most liquid securities traded on the Spanish market, expected outcomes will provide a real picture of the materiality of biodiversity for Spanish businesses. This information will also help us to know whether biodiversity remains a challenge across the largest Spanish companies by market capitalisation or key progress has been made and can provide direction and momentum to other enterprises at national and international scale. Joint press release download ...