G7 backs new Taskforce on Nature-related Financial Disclosures
Finance ministers from the Group of Seven (G7) of the largest economies have endorsed the launch of the new Taskforce on Nature-related Financial Disclosures (TNFD).
TNFD is a new global market-led initiative which aims to provide financial institutions and corporates with a complete picture of their environmental risks and opportunities. TNFD will deliver a framework for organisations to report and act on evolving nature-related risks, building on the success of the Task Force on Climate-related Financial Disclosures (TCFD).
In the communiqué following their pre-G7 meeting, released today, G7 Finance Ministers said: “We look forward to the establishment of the Taskforce on Nature-related Financial Disclosures and its recommendations.”
Their endorsement follows a recent communiqué issued by G7 Climate & Environment Ministers recognising the initiative, which stated: “… we recognise the importance of work on nature-related financial disclosure and note with interest the establishment of the Taskforce on Nature-related Financial Disclosures and its aims.”
The TNFD will be led by two Co-Chairs, Elizabeth Maruma Mrema, Executive Secretary of the UN Convention on Biological Diversity (CBD) and David Craig, CEO of Refinitiv and Group Leader of Data & Analytics Division at London Stock Exchange Group (LSEG).
Elizabeth Mrema, said: “The G7 endorsement should be recognized as vital and a clear signal to global business and governments of the need for urgent action to halt nature loss. Nature is declining at rates unseen in human history, which poses unprecedented risks for corporates and financial institutions, so now is the time for decisive action that can secure a sustainable future.”
Welcoming the G7 endorsement, David Craig said: “Biodiversity and nature loss is a global crisis. Governments have a pivotal role to play in supporting markets in tackling this emergency, so we’re pleased the G7 has thrown its weight behind the TNFD.”
He added: “Data gaps currently prevent financial institutions from assessing their nature-related risks, and so better information will accelerate the understanding of these issues and support a shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes.”
The TNFD will ensure that the framework developed is actionable and accessible for corporates and financial institutions, and builds upon cutting-edge research and innovation from all regions.
Read full press release on the launch of the TNFD.
Photo credit: Jonathan Glynn Smith