Co-chairs appointed to lead taskforce on nature-related disclosures
Nature and biodiversity loss represents significant risk to corporate and financial stability, while action for nature-positive transitions could generate up to $1trn in annual business value and create 395 million jobs by 2030. The work on creating a framework for nature-related risks began with the launch of the Taskforce on Nature-related Financial Disclosures (TNFD) on 4 June, with the appointment of its co-chairs.
David Craig, CEO of Refinitiv and group leader of data and analytics division at the London Stock Exchange Group (LSEG) and Elizabeth Maruma Mrema, executive secretary of the UN Convention on Biological Diversity (CBD), will co-chair the taskforce, which will consist of 30 members representing stakeholders such as financial institutions, corporates and data/service providers globally.
By 2023, the taskforce commits to delivering a framework for organisations to report and act on evolving nature-related risks. Through consultations with different stakeholders, the taskforce will 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 systematic loss of soil fertility. In the first year, the TNFD will build upon the success of the Taskforce on Climate-related Financial Disclosures (TCFD), which has become instrumental in mainstreaming the issue of climate-related risk.
The TNFD framework will adopt a four-pillar approach, structured around how organisations operate: governance, strategy, risk management, metrics and targets. This is similar to TCFD framework structure, except for a broader definition of “risks and opportunities” in each pillar. The framework will also align with and draw from existing initiatives, frameworks and standards relevant to its scope and be integrated with existing standards such as GRI, SASB and forthcoming IFRS Sustainability Board.
The initiative to bring together this taskforce was first announced in July 2020, with the informal working group comprised of 74 members across 24 countries, working to propose practical recommendations for scope and workplan of the TNFD.