Home » NewsOver 500 organisations and $17.7 trillion AUM now committed to TNFD-aligned risk management and corporate reporting Date Posted 25th October 2024 CALI, COLOMBIA, 25 October 2024 DOWNLOAD PRESS RELEASE – ENGLISH DOWNLOAD PRESS RELEASE – SPANISH The Taskforce on Nature-related Financial Disclosures (TNFD) will announce today at COP16 in Cali, Colombia that the total number of companies and financial institutions committed to getting started with voluntary reporting of their nature-related issues in line with the TNFD recommendations now stands at 502. This marks a 57% increase since the first formal announcement of TNFD Adopters in January 2024. The TNFD’s approach to assessment and disclosure is fully aligned to the goals and targets of the Global Biodiversity Framework (GBF) and operationalises the specific requirements of Target 15 of the GBF, calling on governments to introduce requirements by 2030 for corporate reporting of nature-related dependencies, impacts and risks. Today’s announcement by the Taskforce demonstrates that the market is already moving quickly to embrace better nature-related risk management and disclosure aligned with these global policy goals. Full list of TNFD Adopters Drawn from 54 countries or areas (including 25 emerging markets) and across 62 of 77 SASB SICS sectors, the publicly-listed companies represent over USD 6.5 trillion in market capitalisation, an increase of 8% since the TNFD’s last formal adoption announcement at London Climate Action Week (LCAW) in June 2024. 129 financial institutions are now registered as TNFD Adopters, representing USD 17.7 trillion in assets under management, marking an 11% increase from LCAW in June, including 25% of the world’s systemically important banks (GSIBs). Among the notable new adopters are financial institutions abrdn, Banco de Bogotá and Manulife Investment Management and a diverse range of companies across sectors, including global professional services firm KPMG, metals and mining company Freeport-McMoRan, airline Qantas, food retailers Morrisons and Sainsbury’s, iron & steel producers Jindal Stainless Limited and JSW Group, solar technology & project developer JA Solar Technology, electronics companies Mitsubishi Electric Corp and Philips, electric utilities EDP, Electrobras and Tokyo Electric Power, and computer hardware company Logitech International. These organisations have signalled their intention to begin adopting the TNFD recommendations and publishing TNFD-aligned disclosures as part of their annual corporate reporting for FY2024 (or earlier) or FY2025 outcomes. Prabodha Acharya, Chief Sustainability Officer at JSW Group, said: “TNFD is guiding our efforts to align our broader environmental, social and governance efforts as we integrate nature-related risks into JSW Group’s overall sustainability strategies. I feel the holistic approach of TNFD will enhance our ability to manage environmental, social and financial risks cohesively. Adopting the TNFD will help us ensure consistency and coherence in our strategic approach to risk.” Brian Kernohan, Chief Sustainability Officer at Manulife Investment Management, said: “With over 40 years of experience as an institutional manager of natural capital investments and as one of the pioneers in issuing a TNFD-aligned nature disclosure, becoming a TNFD Adopter is a logical next step for us. In 2024 alone, we have made several important ‘LEAPs’ forward in our ability to identify nature-related risks and opportunities, and we believe the best is yet to come.” Juan Jose Freijo, Chief Sustainability Officer at Brambles, said: “Brambles’ decision to become an early adopter of the TNFD framework builds on the advantages of our circular business model which has demonstrated environmental benefits over single-use alternative systems. The TNFD challenges a deeper investigation of a business’s dependencies and impacts on the natural world and its ecosystems so that companies can develop an integrated strategy that accounts for how their resource base can support long-term value creation. It also facilitates a more holistic approach to macro-level risk management while focusing the strategy on the commercial opportunities available in a more sustainable social and economic system.” Tom Gitogo, Group MD & Chief Executive Officer of Britam Holdings Plc, said: “Britam’s adoption of the TNFD framework reflects our strategic commitment to safeguarding nature and identifying risks early. This alignment supports our efforts to unlock growth in green finance, while embedding nature-related risks into our overall risk management system, ensuring we remain agile, competitive and responsible in a rapidly evolving global market.” Sarah Moody, Chief Corporate Affairs & Sustainability Officer at abrdn, said: “At abrdn, the environmental transition – the interconnecting relationship between climate and nature – is a key pillar of our sustainability strategy. Becoming a TNFD Adopter is a vital step on our sustainability journey. Alongside this, we are developing an engagement approach within our investments team focused on the companies with the most material exposure to nature and are seeking the best approaches to data gathering on nature-related impacts.” John McCalla Leacy, Head of Global ESG at KPMG International, remarked: “Our mission to tackle climate change will fail without an integrated approach to addressing nature and biodiversity risks – the two are inextricably linked. The World Economic Forum’s latest Global Risk Report puts this challenge into perspective, with biodiversity loss classed as the third highest long-term business risk; extreme weather from climate change is number one. I am proud that KPMG International is a TNFD Adopter and I am equally proud of the nature and biodiversity practitioners across our global organization, that are working with their clients to facilitate the changes that are so urgently needed to deliver a nature positive future.” Simon Roberts, Chief Executive of Sainsbury’s, commented: “We want to play a leading role in creating a more sustainable food system and recognise that economic prosperity, improving nature and biodiversity and reducing environmental impact all go hand-in-hand with food production. The TNFD provides a framework upon which businesses like us can build our understanding of nature-related risk and opportunities and embed them further into our strategy and decision making. We’re committed to protecting and enhancing nature and the wider environment on which we depend, to keep providing good food for generations to come.” David Craig, Co-Chair of the TNFD, commented: “The speed of voluntary market adoption over the past year since the release of the TNFD recommendations highlights the growing appreciation among companies and financial institutions across sectors and geographies that nature is a material risk issue for their business and a new source of opportunity and potential competitive advantage. We have seen significant uptake across sectors – in particular from asset managers, as they address climate and nature risk in their portfolios. Going forward, the growth in these assessments and public disclosures is helping direct financial flows towards more resilient business models and nature-positive outcomes.” ABOUT THE TASKFORCE ON NATURE-RELATED FINANCIAL DISCLOSURES (TNFD) The Taskforce on Nature-related Financial Disclosures (TNFD) is a market-led, science-based and government-backed initiative providing organisations with the tools to act on evolving nature-related issues. It was launched in June 2021 with the support of the G20 Sustainable Finance Working Group and financial support from a number of governments and philanthropic foundations. In September 2023, the TNFD published a set of disclosure recommendations and guidance that encourage and enable business and finance to assess, report and act on their nature-related dependencies, impacts, risks and opportunities. The TNFD recommendations now operationalise Target 15 of the Global Biodiversity Framework (GBF) agreed to by over 190 governments at the CBD COP15 in Montreal in 2022 and enable businesses and finance to integrate nature into their governance, strategy, risk management and capital allocation decision making. The goal of the Taskforce is to support a shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes, aligned with the Global Biodiversity Framework. With the recommendations released, the Taskforce is now focusing its efforts on encouraging and supporting voluntary market adoption and supporting efforts to address the implementation, capability building and data needs of market participants. The Taskforce is comprised of 40 senior executives drawn from leading financial institutions, corporates and market service providers from around the world and across sectors, with combined assets of over US$20 trillion. Twenty core knowledge partners from leading science, standards, and data institutions feed into the work of the Taskforce. A group of over 1,600 organisations support the work of the Taskforce as institutional members of the TNFD Forum. Over 500 organisations globally have now committed to start reporting on their nature-related issues aligned to the recommendations of the TNFD. MEDIA CONTACTS Rita Lockheart, Communications Lead, [email protected] [email protected]