At a meeting of finance ministers from the G7 last week, a Taskforce on Nature-related Financial Disclosures (TNFD), was endorsed. The TNFD aims to measure the impact that financial institutions and corporations are having on the natural world.
The TNFD will 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, to develop a framework that supports 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 Taskforce will be led by two co-chairs, Elizabeth Maruma Mrema, executive secretary of the UN Convention on Biological Diversity (CBD) and David Craig, CEO of Refinitiv.
Elizabeth Mrema, said:
The G7 endorsement should be recognized as vital and a clear signal to global business and governments of the need for urgent action to halt nature loss. Nature is declining at rates unseen in human history, which poses unprecedented risks for corporates and financial institutions, so now is the time for decisive action that can secure a sustainable future.
At the G7 meeting, finance ministers also backed global mandatory climate-related financial reporting by companies, announced the central banks of the G7 will assess the financial stability risks posed by climate change, and reaffirmed a $100bn climate finance pledge.