The tips define 14 suggestions for corporations to measure and share biodiversity results, which embrace info on the organisation’s governance of nature-related points in addition to processes, threat administration, metrics and targets.
The purpose is to allow higher determination making by corporations and traders in addition to contribute to a worldwide shift in monetary flows in the direction of nature-positive outcomes, the TNFD mentioned.
David Craig, co-chair of the TNFD, mentioned the taskforce additionally expects different corporations and monetary establishments to start out saying their intention to undertake the suggestions from this week.
He mentioned: “We invite other early adopters to join them in signalling their intentions to start adopting and using the recommendations.”
The TNFD additionally launched further steerage to assist organisations get began with company reporting associated to nature.
Scaling up motion to revive the resilience of nature is now a worldwide coverage and regulatory precedence, and it’s business-critical, posing important long-term monetary affect if not acted upon
It comes after a two-year design course of and growth section involving market members, science consultants and different stakeholders from the world over.
The UK is among the many nations the place policymakers, regulators, asset house owners, asset managers and companies are rising their concentrate on nature-related threat administration and the need for the non-public sector to sort out world nature loss.
Elizabeth Mrema, co-chair of the TNFD, mentioned: “Nature degradation is increasing and with six of the nine planetary boundaries already breached, nature risk is financial risk.
“Yet to date, businesses have mostly considered nature to be an unlimited and free provider of critical inputs into their operations and value chains.
“Scaling up action to restore the resilience of nature is now a global policy and regulatory priority, and it is business-critical, posing significant long-term financial impact if not acted upon.”
Environment Secretary Therese Coffey mentioned: “We encourage UK businesses and financial institutions across sectors to engage with the TNFD’s recommendations and the work of the UK’s TNFD National Consultation Group.
“The nature risk management and disclosure recommendations released today are important in shifting the dial on nature loss and we continue to actively support the TNFD’s work.
“We look forward to the TNFD informing a global baseline on nature and broader sustainability standards and reporting so that global capital allocations can increasingly be aligned with environmental goals at an international and domestic level.”
Sacha Sadan, director of ESG on the Financial Conduct Authority , mentioned: “We welcome today’s release of the Taskforce on Nature-related Financial Disclosures (TNFD) risk management and disclosure framework.
“The framework will serve as a useful tool to help companies and financial institutions assess, manage and report on nature-related risks and opportunities.”
The TNFD suggestions mark the continued growth of a worldwide baseline for organisations to report non-financial info like that on local weather, sustainability and nature.
The taskforce mentioned the suggestions are in keeping with different reporting tips together with these from the International Sustainability Standards Board and the Global Reporting Initiative.
It additionally mentioned the suggestions are aligned with the Global Biodiversity Framework signed by 196 nations on the UN’s biodiversity summit in Montreal in December.
This means corporations will be capable to align their company reporting with the worldwide coverage objectives as they’re doing on local weather associated points just like the Paris Climate Agreement to restrict warming to 1.5C.
Mr Craig mentioned: “Businesses and financial institutions now have the tools they need to take action.”
He added that adopting TNFD suggestions “represent a step-change in the momentum and capacity for business and finance to identify, assess and disclose their exposure to nature-related issues in a manner consistent with climate-related-reporting”.
