May newsletter: three new consultation initiatives announced
Consultation & engagement efforts expanded
Today, as part of the Taskforce’s efforts to engage and consult with a wide variety of market participants and stakeholders, TNFD announces three new initiatives:
- Consultation Groups
- Indigenous Peoples and local communities engagement
- Pilot program partners
The Consultation Groups are being activated at a national or regional level to expand our outreach and engagement with actors in markets where there has been significant interest in TNFD’s work and the beta framework. Consultation Groups are market-led, with a convening organisation from the private sector bringing together business, finance, public sector and civil society organisations to discuss nature-related business and finance issues and the future adoption of the global TNFD framework.
The initial six Consultation Groups are:
- Australia and New Zealand, convened by the Responsible Investment Association Australasia (RIAA);
- India, convened by the Confederation of Indian Industry (CII);
- Japan, convened by TNFD Taskforce member MS&AD Insurance Group Holdings;
- Netherlands, convened by TNFD Taskforce Members Rabobank and NVB;
- Switzerland, convened by TNFD Taskforce Member UBS, ad interim; and
- United Kingdom, convened by the Green Finance Institute (GFI).
TNFD is also expanding consultation efforts by engaging Indigenous Peoples and Local Communities, via a partnership with the IUCN, to ensure the voices and perspectives of Indigenous Peoples and Local Communities are incorporated into the design and development phase of the framework. Indigenous and local communities are stewards of much of the world’s natural resources and play a particularly critical role in safeguarding nature. Their communities are also highly dependent on nature for their livelihoods and Indigenous-led enterprises are often pioneers in sustainable business models.
Four piloting program partners have been confirmed: FSD Africa through African Natural Capital Alliance (ANCA), Global Canopy, UNEP-FI, and the World Business Council for Sustainable Development (WBCSD). With their support, the TNFD will pilot test all aspects of beta versions of the TNFD framework with a diverse range of companies and financial institutions across geographies and sectors to inform the iterative development of the TNFD’s recommendations over the next 12 months.
Review and testing of the framework continue
The first beta version of the TNFD framework for nature-related risk and opportunity management and disclosure was released in March, kicking off an 18-month process of consultation and development. Market participants and other stakeholders have begun reviewing and providing feedback. Thank you to those who have already provided feedback via TNFD’s interactive online platform. For feedback to be considered in advance of the next release, please send by 25 May 2022. Please continue to review and comment on the current draft framework and the coming iterations, as well as the data discussion paper published alongside it.
In addition to feedback, corporates and financial institutions keen to explore how the TNFD framework might apply in their specific organisational context can pilot test the framework independently and, in some cases, through industry collaborative efforts. Piloting begins in June, when we will publish a detailed guidance document alongside the second beta release of the framework. In the meantime you can find more information about piloting of the first prototype here on the online platform.
The second beta release is planned for late June 2022. You can also view the first beta version framework in report form. A detailed Executive Summary is available in English, French, Japanese, Mandarin, Portuguese and Spanish.
Meet the TNFD Alliance
TNFD Taskforce spotlight
TNFD Taskforce member Renata Pollini, Head of Nature at Holcim, shares why they joined the Taskforce and what they are now working on in their role as Taskforce Member.
TNFD partner spotlight
TNFD spoke to the International Union for Conservation of Nature (IUCN) on its work and its partnership with TNFD. IUCN is an official knowledge partner, engagement partner and TNFD Forum institution.
How does IUCN address and view nature-related risks and opportunities?
With 1,400 Member organisations and 18,000 experts, IUCN draws on its diverse network to develop innovative guidance, polices and tools for decision makers. IUCN also brings rigorous, standardised, quantitative, global and spatially explicit data that challenges business-as-usual practices and can be used to deliver nature-positive outcomes.
Why did you decide to partner with TNFD?
IUCN is convinced there is an urgent need to mobilise private investment that has the potential to contribute to a nature-positive impact. By sharing their knowledge and resources, IUCN hopes the TNFD framework will enhance understanding about the role of nature in business, and provide robust guidance for assessing and disclosing nature-related risks and opportunities.
How do you feed into the Taskforce’s work and specific elements of the framework?
IUCN will engage with Indigenous Peoples and Local Communities (IPLCs) to ensure their voices and perspectives are incorporated into the TNFD Framework. In addition, TNFD will participate in the IUCN Leaders Forum on “Building nature-positive economies and societies”, 13–15 October 2022, in Jeju, Korea, to discuss the framework’s progress and ‘sticking points’ with leaders. IUCN is a core Knowledge Partner of TNFD, contributing and supporting the framework development, for example on the definitions included in the first beta release and the emerging approach to metrics and targets in the upcoming second beta release.
Read, watch, listen: key new content on nature, finance & business
High and Dry: how water issues are stranding assets (CDP and Planet Tracker) This report covers the significance of the water crisis to the financial sector and how water risk is becoming a potential threat to financial stability. It examines the drivers of water risks – physical, regulatory, reputational, technological – and assesses the level of awareness and preparedness that exists in four major sectors: coal, electric utilities, metals and mining, oil and gas.
Nature-related financial disclosures will guide global ESG development and transformation (China Development Brief) (original text in Mandarin) This insight targeted at a Chinese audience gives an overview of TNFD’s progress to date and the wider context in which it sits, highlighting the importance of nature-related financial disclosure to taking action on the destruction of nature. It also covers the opportunities TNFD provides to China, including as a reference for domestic environmental information disclosure and even to expand the scope of those domestic disclosures beyond their current limits.
Draft European Sustainability Reporting Standards (EFRAG) The European Commission has instigated the drafting of a set of EU Sustainability Reporting Standards (ESRS) as part of the Corporate Sustainability Reporting Directive. The drafts have now been released for public consultation, with feedback due by the 8 August 2022. The standards cover all aspects of sustainability and include work on biodiversity and ecosystems, water and marine resources, and, more generally materiality assessment disclosure requirements.
For more new content, including from KPMG, WWF, WEF and many more, visit the TNFD Knowledge Bank, which features an extensive selection of curated research reports and market insights.
Join TNFD at events
- Responsible Business Europe (8-9 June) Hosted by Reuters, the first day of the conference will include a keynote from TNFD Co-Chair David Craig, ‘How to build a ‘Nature First’ approach’, as well as a session on ‘Bringing Nature and Biodiversity into the Boardroom.’
- RI Europe 2022 (14-15 June) This conference, focusing on sustainable finance developments and industry best practices, features TNFD Technical Director Emily McKenzie as a speaker during the event ‘Biodiversity and the quest to ‘live in harmony with nature’ by 2050’.
- Save the date: IUCN Leaders Forum 2022 ‘Building nature-positive economies and societies’ (13-15 October) TNFD and IUCN are partnering with the Korean Ministry of Environment and the Jeju Special Self-Governing Province to bring together leaders from government at national and local level, NGOs, Indigenous Peoples organisations and executives from finance and industry. TNFD’s members and any interested parties are invited to this attend. Questions on the programme and the registration fees and process may be addressed to: [email protected].
For a complete list of upcoming events with TNFD spokespeople, see tnfd.global/events.
TNFD in the media – highlights
- Capital Monitor (25 April): Why repairing nature isn’t just a job for finance quants
- ESG Investor (26 April): TNFD Co-Chair Emphasises Climate-Nature Alignment
- Pensions & Investments Online (29 April): Actiam, Cardano encourage TNFD to focus more on outcomes
- Nikkan Kogyo Shimbun Online (29 April): TNFD、「自然と事業活動」の関係開示
- GreenBiz (10 May): Every company needs to assess its nature-related risks
- Cash (22 May): Fondsmanager drängen in ESG-Nische mit 2000 Prozent Wachstumspotenzial