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 https://www.youtube.com/watch?v=IVVpcylTt7c Comparte Share on facebook Share on twitter Share on linkedin Share on email...

A total of 39 financial institutions and private firms, 17 think tanks and 6 governments have formed an Informal Working Group (IWG) to establish a Task Force on Nature-related Financial Disclosures (TNFD).The new TNFD is inspired by the lessons learned in the Task Force on Climate-related Disclosure (TFCD), and led by a coalition integrated by Global Canopy, the United Nations Development Program (UNDP), the Finance Initiative of the UN Environment Program (UNEP FI) and WWF. It has been created with the aim of create resilience in the global economy by redirecting flows of finance at scale towards nature-positive activities to allow nature and people flourish.The initiative is supported by financial institutions such as AXA, BNP Paribas, DBS Bank, Rabobank, First Rand, Yes Bank, Storebrand, as well as the governments of the United Kingdom, France, the Netherlands and Switzerland. Ecoacsa is among the additional stakehokders that have come together to create the Informal Working Group (IWG) with the objective of scoping the mandate and governance of the TNFD. Why a TNFD? Nature cannot wait, while we devote efforts to solve the climate crisis. Despite their material influence on society and economies, nature-related risks and impacts are rarely measured or disclosed, and are largely excluded from corporate and financial decision-making, regulation and supervision.The eventual outcome of the TFND is to make these risks and impacts visible and to increase the resilience of the global economy by reducing flows of finance that are negative for nature and people. At the same time, it seeks to increase funding that are positive, in alignement with the Paris Agreement, the Post2020 Biodiversity Goals and the Sustainable Development Goals.In order to avoid risks and find new opportunities, members of the IWG will work over the next two years to solve the reporting needs, metrics and data of financial institutions, so that they can better understand their risks, dependencies and impacts on nature.Throughout this period, it will be necessary for us to examine both the financial dependencies, impacts, transition and physical risks, not just on climate, but on nature´s assets and the ecosystem services provided to the business sector they invest in or lend to, which lost at scale could destabilise the economy.Launch of the TNFD is planned for early 2021 and will be tasked with devivering a framework to guide nature-related financial disclosure by the end of 2022. Until then, the IWG is already scoping the mandate and governance to ensure that the initiative contributes to avoiding the systemic risk and instability for markets and the financial system at global scale that are already affecting countries, companies and financial institutions around the world experiencing the consequences of the dramatic loss of nature and biodiversity.An informal Technical Expert Group will server at the direction of IWG to support the process and ensure a collaborative approach with other relevant initiatives. The TNFD partners are engaging with the Banks and Supervisors Network for Greening the Financial System (NGFS); the OECD and Multi Stakeholder Group on Business, Finance and Biodiversity, as well as the Natural Capital Coalition, Business for Nature and other organizations. Statements Biodiversity finance is the new frontier of green finance. Nature requires as much ambition and collective effort as it has been done for climate so far, and the private sector can play a crucial part in redirecting financial flows. We are convinced that the work of the Task Force on Nature-related Finance Disclosure or ‘TNFD‘ will accelerate the understanding of these issues and will ultimately lead to both a reduction in financial flows and economic activities that are harmful to biodiversity and a massive redirection of flows towards activities that are favorable to biodiversity. Bérangère Abba, Secretary of State on Biodiversity of France Habitat loss or degradation including deforestation that it is largely driven by the way we produce and consume food are rapidly undermining the natural systems on which our economies and societies rely on. Nature loss is a source of sytemic risk and instability for markets and the financial system but it is largely ignored in corporate and financial decision-making, regulation and supervision. Our economic behaviour has assumed the services that healthy natural systems provide, and on which our economies have been built, are infinitive. They aren´nt. We are pleased to welcome this collaboration with financial institutions, governments and other experts to establish the TNFD as a vehicle to swift finance away from destructive activities and toward a nature-positive economy Margaret Kuhlow, Finance Practice Lead and Interim Conservation Director, WWF International Changing flows of money from nature negative to nature positive is a fundamental ingredient in swifting global systems towards protecting and nurturing nature. Nature underpins world´s businesses. We desperately need nature —for air, water, food and for our health, inspiration, jobs, livelihoods, and for achieving the Sustainable Development Goals. Financial institutions and businesses have a critical key to protect nature. If we protect nature, it will pay us back with significant financial and material dividends. Midori Paxton, Head of Ecosystems and Biodiversity, UNDP An increasing number of financial institutions are stepping forward to address the twin crisis of climate change and loss of nature, and the strong apetite from the TNFD is further evidence of this momentum. Standarising nature-related disclosures will bring much needed efficiencies and transparency to financial markets. Eric Usher, Head of UN Environment Program Finance Initiative The launch of the Informal Working Group (IWG) for the TNFD is a significant step towards the goal of moving the global financial system from nature negative to nature positive. I look forward to working with the IWG members to shape and implement the Task Force that will help to make the transition possible. Madeleine Ronquest, Head Environmental, Social and Climate Risk at FirstRand Group Enterprise Risk Management Loss of nature is increasingly impacting business performance. Consumers, stakeholders and governments expect business to take actions which halt the loss of nature. WBCSD supports the launch of the TNFD which will help companies consistently and credibly assess, address and report their impacts and dependencies on nature. Diana Holdorf, Managing Director & Senior Management Team, World Business Council for Sustainable Development The creation of a TNFD is hugely important as it will lead to new ways of identigying, valuing and reporting on nature-related risks, as well as indentifying new economic opportunities to protect and restore natural world on which we depend, which is more pressin than ever.” Andrew Mitchell, Founder and Senior Advisor to Global Canopy Comparte Facebook-f Twitter Linkedin-in ...