In September 2023, the Taskforce on Nature-related Financial Disclosures published its final recommendations, with a celebration at the New York Stock Exchange during New York Climate Week. The following week, the Green Finance Institute (GFI) was delighted to host the UK Launch of the TNFD’s Recommendations in London at the Royal Society, where renowned naturalist Charles Darwin had been a fellow. We were joined by leaders in business, finance and civil society to hear from speakers about the importance of integrating nature and biodiversity into the way we do business and the transformative potential of the TNFD as a tool to support this, including:
- Dr Rhian-Mari Thomas OBE, CEO of the Green Finance Institute
- The Rt Hon Thérèse Coffey, then Secretary of State for Environment, Food and Rural Affairs of the United Kingdom
- Sir Adrian Smith, President, Royal Society
- David Craig, Co-Chair, TNFD
- Emily McKenzie, Technical Director, TNFD
- S. Venkatakrishnan, CEO, Barclays
- David Croft, Group Head of Sustainability, Reckitt
- Professor Andy Purvis, Natural HistHistory Musem
- Baroness Penn, then Lords Treasury Minister, HMT
- Tanya Steele, CEO, WWF UK
- Andrew Mitchell, Vice-Chair, TNFD Stewardship Council
TNFD Recommendations
It is clear that we need to change the relationship between business, finance and nature. Nature is no longer just a corporate social responsibility issue, but a core and strategic risk management issue alongside climate change. Accelerating nature loss is increasing physical and transition risks to business and investors, and the TNFD’s recommendations are a vital tool to start understanding a business’ exposure to nature.
After two years of design and development through an open innovation process in consultation with thousands of stakeholders across sectors and markets, the TNFD published its recommendations in September 2023.
It includes 14 recommended disclosures based on the four pillars of the Taskforce on Climate-related Disclosures (TCFD): governance, strategy, risk & impact management, metrics & targets – so that organisations can build on what they’ve already done with climate and have an integrated approach to disclosing against nature.
What next?
The journey from concept to delivery, to integrate nature into business and financial practices, has been an extraordinarily collaborative effort. The TNFD have involved hundreds of organisations and thousands of individuals to incorporate the insights and expertise from scientists, civil society, multilateral organisations, corporates, financial institutions, local community groups, and indigenous peoples in the consultative process.
At the GFI, we are proud to play our part by co-chairing the informal working group that set up the Taskforce, hosting the global secretariat and convening the UK consultation group.
Now we’re passing the baton onto the corporates and financial institutions to take the TNFD into the way their businesses operate – and we are here to support along the way through the UK consultation group. Any organisation can implement TNFD recommendations on a voluntary basis and leading companies have already announced their plans to start TNFD reporting, including GSK, Mirova, Ecopetrol, United Utilities, Sanlam Investments and others.
Disclosures through the TNFD are a critical first step to centralise nature within business models, operations and supply chains and mobilise capital for nature-positive outcomes. However, we must also move beyond disclosures by:
- Developing a supply of investable high-integrity nature projects
- Ensuring that that supply is met with demand from investors, financial institutions and corporate buyers
- Creating a supportive market environment and infrastructure.
The TNFD is a prime example of turning concept into action. Now, we need to translate disclosures into the mobilisation of capital for nature and biodiversity.
Please do get in touch with us if you have any questions about how to get started with TNFD disclosures or mobilising finance for nature more broadly – tnfdncg@gfi.green.
