United States:
UN-Sponsored, Market-Led Task Force On Nature-related Financial Disclosures To Officially Launch
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With the explicit support of the G7 Finance Ministers and
Central Bank Governors1 as well as many endorsements by major corporations and
financial institutions, the UN-sponsored and market-led Task Force on Nature-related Financial
Disclosures (TNFD) will officially launch on June 10, 2021.
The TNFD was first announced in July 2020 by the four founding
partners of the initiative bringing together the TNFD—Global
Canopy, the United Nations Development Program (UNDP), the United
Nations Environment Program’s Finance Initiative (UNEP FI) and
the World Wildlife Foundation.
Contemporaneously with the launch, the TNFD is releasing the
related Nature in Scope report, which details the
TNFD’s ambition to deliver a new framework for organizations to
report and act upon evolving nature-related risks and
opportunities, as well as a Proposed Technical Scope document, reflecting
the efforts of an informal working group and an informal technical
consulting group.
While the TNFD acknowledges (and hopes to build on) the success
of the Task Force on Climate-related Financial Disclosures (TCFD),
TNFD’s two recently appointed co-chairs also acknowledge the unique challenges that the TNFD
faces by stating:
[T]he new nature-focused Taskforce faces unique challenges: when
it comes to data, metrics and methodologies, there are critical
differences between climate and nature.
Measuring and disclosing nature-related risks is an even more
complex challenge than it is for climate-related risks. A key
challenge is that, unlike for climate, it is not just what your
activities are, but where they are, which matters, which means
having more location-specific data from corporates will be part of
the solution.
Improving corporate disclosures will also only be one of many
levers to close the data gap on nature-related financial risks. In
the climate space, better corporate disclosures were at the centre
of the solution to the data challenge. Satellite data may also play
a significant role in closing data gaps on nature-related
risks.
Footnote
1 Described in our June 7, 2021, Perspective “G7 Commits to Multi-Year Effort to Support
Net-Zero Global Economy and to Move to Mandatory Climate Risk
Reporting.
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