Enabling and Scaling up Market Adoption of Nature-related Financial Disclosures

According to the World Economic Forum, $44 trillion of global economic output, around half the global economy, is at moderate or significant exposure to nature-related risks. The Taskforce on Nature-related Financial Disclosures (TNFD) is developing a market-led, integrated global risk management and disclosure framework. This framework forms the basis for companies to report on nature impacts and dependencies, and risks and opportunities. Such disclosures provide the basis for shifting the flow of global capital to transition the global economy to nature-positive outcomes. This project will help business and financial institutions around the world report nature-related financial disclosures in their financial statements. Such information will better inform governments, financial markets, community groups and citizens as they make decisions for more sustainable prosperity.

Project data

Countries: Brazil, China, Colombia, Costa Rica, Egypt, India, Indonesia, Kenya, Malaysia, Mexico, Morocco, Nigeria, Peru, Philippines, South Africa
IKI funding: 28,994,000.00 €
Duration: 01/2023 till 01/2029
Status: open
Implementing organisation: United Nations Development Programme (UNDP)
Political Partner: Diverse biodiversity relevant institutions in the respective partner countries/Diverse biodiversitätsrelevante Institutionen in den entsprechenden Partnerländern
Implementing Partner: Global Canopy Programme (GCP)

Green Finance Institute - England

UNEP Finance Initiative - Switzerland

World Wide Fund for Nature (WWF) International

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State of implementation/results

In early September 2023, the Taskforce on Nature-related Financial Disclosures (TNFD) joined the world's largest conservation organizations, institutions, as well as business and financial coalitions, to launch a new initiative at www.naturepositive.org. This initiative aims to standardize the definition of the term "Nature Positive," strengthen the integrity of the term, and support efforts to achieve nature-positive outcomes.
After two years, the TNFD released its final recommendations for managing and reporting on nature-related risks in September 2023.
At the time of the release, the TNFD also introduced a "Getting Started" guide, developed in collaboration with 9 partner organizations: Business for Nature, Capitals Coalition, CDP, the Finance for Biodiversity (FfB) Foundation, the Principles for Responsible Investment (PRI), the UN Environment Programme Finance Initiative (UNEP FI), the UN Global Compact, the World Business Council for Sustainable Development (WBCSD), and the World Economic Forum (WEF).
Further guides and a catalog of tools to help businesses implement the recommendations were made available on the new TNFD website.
TNFD's recommendations were structured to allow companies and financial institutions to build on their climate-related reporting. To support adoption and provide consistent, comparable, and decision-useful information for report users, the Taskforce developed a set of additional guides that cover the following:
- How to get started with the TNFD recommendations, with practical steps, considerations, and insights from pilot projects;
- The identification and assessment of nature-related issues (the LEAP approach), using and integrating existing market-leading frameworks, tools, and datasets;
- Specific sectors and ecosystem types (biomes);
- Scenario analysis to support organizations in conducting a qualitative scenario workshop focused on testing and expanding thinking, planning, and decision-making;
- The inclusion of indigenous peoples, local communities, and affected stakeholders.
In December 2023, TNFD released "TNFD in a Box." "TNFD in a Box" serves as a capacity-building tool and can be downloaded for free.

After the release of the TNFD recommendations, TNFD entered its second phase, focusing on:

1. The embedding of TNFD recommendations into the global sustainability reporting standard, which is currently being developed by the ISSB.
2. The promotion of voluntary implementation of TNFD recommendations.
- The goal is to guide companies and financial institutions across all sectors and regions through various phases of their nature-related risk and opportunity management: from basic awareness to building internal capabilities, to the point where they have the confidence and capacity to commit to nature-related reporting in line with the TNFD recommendations.
3. Training and capacity-building for companies and financial institutions (FIs).
4. Improving the quality and access to nature-related data for companies and FIs.

Within 9 months of the TNFD recommendations' release, 416 companies and financial institutions have committed to disclosing nature-related risks in line with TNFD guidelines. These include leading publicly listed companies from various regions and industries, with a market capitalization of $6 trillion; over 100 financial institutions, including some of the world's largest asset managers, representing nearly $16 trillion in assets under management (AUM). Some have already begun publishing reports in line with TNFD guidelines, and investors are urging companies to start reporting in accordance with TNFD.

Latest Update:
12/2024

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Project relations

Conserving biological diversity
- Biodiversity finance

Enabling and Scaling up Market Adoption of Nature-related Financial Disclosures

- Brazil
- China
- Colombia
- Costa Rica
- India
- Indonesia
- Mexico
- Peru
- Philippines
- South Africa

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