(2 May 2024 – Australia) The Taskforce on Nature-Related Financial Disclosures (TNFD) is strongly encouraging corporates to consider nature as an explicit risk as opposed to purely a compliance disclosure item.
Enterprises must assess their nature-related dependencies, impacts, risks, and opportunities and disclose their findings to all stakeholders as nature-related dependencies represent material financial risks for organisations. There are still persistent nature and biodiversity knowledge gaps and critical barriers formed by the inherent complexities of de-risking highly interconnected global supply chains.
“Like climate, nature can be a source of material financial risk for an organisation and there's growing evidence of that being the case. Our goal is to influence the International Sustainability Standards Board and shape how they evolve, and to inform the mandatory reporting regime in Australia and other jurisdictions around the world” commented TNFD Executive Director Tony Goldner.
“The number one question is where to get started. It's a new topic. It can feel very foreign. This is a whole new language system, and regulation can feel still far away. But this is really not about compliance and regulatory reporting – it's really about thinking about nature as a risk. We're seeing increasingly around the world nature causing significant disruptions to business continuity to the generation of future cash flows. And investors are increasingly asking questions about that.”