- NEWS -
The Case for a Task Force on Nature-related Financial Disclosures
23 September 2020, 10:00:00
This report, written in collaboration between Global Canopy and Vivid Economics, outlines why tackling nature-related risks is an urgent priority for the finance sector, and how a Task Force on Nature-related Financial Disclosures can help.
Nature and the ecosystem services it provides are essential inputs to businesses across the economy. Policy and social norms are expected to increasingly penalise actions that harm nature. Yet at the same time, business activity and the financial services that support it continue to degrade nature at an unprecedented rate.
The deterioration of nature, and society’s response to it, creates systemic and material risks for financial institutions – risks that are still largely not understood
The finance sector is exposed to three types of nature-related risks; (i) physical risk, (ii) transition risk, and (iii) systemic risk
Currently, financial institutions are unable to fully identify, measure and manage nature-related risk
A Task Force on Nature-related Financial Disclosures (TNFD) will help close data gaps and be a critical component of tackling nature-related financial risks
This work was undertaken by Global Canopy and Vivid Economics in support of the Task Force for Nature Related Financial Disclosures (TNFD) Initiative. The TNFD initiative is supported by the Foreign, Commonwealth and Development Office (FCDO) with funding specifically provided towards this report. This report is also funded by the Finance for Biodiversity (F4B) initiative, with support from the MAVA Foundation.