Launch of Task Force on Nature-related Financial Disclosures
Back in 2017, the Task Force on Climate-related Financial Disclosures (TCFD) published voluntary guidelines for reporting risks that climate change poses for business, investments and loans. Now an equivalent set of guidelines is being made for nature-related risk – the creation of a new Task Force on Nature-related Financial Disclosures (TNFD) framework was announced in July 2020. The TNFD will provide guidelines to financial institutions on how to measure and report their dependencies and impacts on nature. The framework will be developed in 2021 and tested the following year, before being made available for wider use.
The TNFD was backed by the UK and Swiss governments, 10 banking giants and over 100 companies and financial institutions. This demonstrates that the private and public sectors are recognising the reliance of the economy on nature, and that business-as-usual is no longer an option. The TNFD working group acknowledge that the success of the financial sector will increasingly be measured through the lens of the Sustainable Development Goals, and the development of this framework is a vital step in the transition to sustainable economies.
Read the Business Green article here.