Over 300 Companies Commit to Nature-related Financial Disclosures, Big Step for Biodiversity Protection

More than 300 companies and financial institutions are set to report on their impact on the natural world, aiming to address the global collapse of biodiversity. The G20-backed Taskforce on Nature-related Financial Disclosures (TNFD) announced that participating groups will provide detailed information about the risks and opportunities associated with their interaction with nature. The aim is to encourage boards to make decisions that have a positive effect on nature, in line with the global agreement reached at the COP15 talks on biodiversity in 2022. This move is expected to attract favor from investors and capital markets. The TNFD’s 14 recommended disclosures were released in September 2023 after being tested by over 250 institutions during the development process. The disclosures cover four main areas: Governance, Strategy, Risk and Impact Measurement, and Metrics and Targets. The companies and financial organizations committing to disclose their nature-related impacts and dependencies include Norges Bank Investment Management, the largest owner of listed companies worldwide. For them, this represents an opportunity to reinforce their responsible investment efforts. The TNFD’s work program began in 2021 and will continue for two years.