More than 300 companies and financial institutions have committed to reporting in line with the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD).
The initial adopters of the task force’s recommendations for disclosing the impact of nature-related risks, which were finalized in September, includes more than 100 financial institutions representing US$14 trillion in assets under management.
In total, 320 organizations from 46 countries — 178 companies, 106 financial institutions, 36 others (such as market service providers, NGOs and public sector groups) and 45 emerging and developing economies — have committed to start making nature-related disclosures in their financial reporting beginning in fiscal 2023, 2024 or 2025.
The final reporting recommendations on nature-related issues were published last year after a two-year development process.
The recommended disclosures follow the approach and structure developed by the Taskforce on Climate-related Financial Disclosures (TCFD), which formed the basis for climate risk disclosure requirements that are now being adopted by regulators around the world.
“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, in a release.
“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 recognizing 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.”
“Nature risk is financial and business risk, and by committing to these disclosures, the TNFD early adopters are taking an important step to managing this risk and securing their businesses’ operations for the long term,” said David Atkin, CEO at the Principles for Responsible Investment, in a release.