The Taskforce on Nature-related Financial Disclosures (TNFD), a voluntary initiative encouraging companies to provide more details about the impact global warming could have on their businesses, says that 320 organizations from over 46 countries have committed to start making nature-related disclosures based on its TNFD Recommendations, a risk reporting framework published in September last year.
By regional breakdown, 42% of the organizations (134) hail from the Asia-Pacific, just behind the region with the largest representation, Europe, with a 43% share (137). North American had a 6% share with 21 committed organizations.
The announcement was made at an issue briefing event at the Annual Meeting of the World Economic Forum in Davos, Switzerland, on Tuesday.
This first cohort of adopters includes leading publicly listed companies across geographies and industry sectors representing US$4 trillion in market capitalization; over 100 financial institutions, including some of the world’s largest asset owners and managers, representing US$14 trillion in assets under management; as well as banks, insurers and other leading market intermediaries, such as stock exchanges and audit and accounting firms.
These organizations have signalled their intention to begin adopting the recommendations and publishing TNFD-aligned disclosures as part of their annual corporate reporting for FY2023, FY2024 or FY2025.
Among the notable financial institutions are Norwegian sovereign wealth fund NBIM – the largest single owner in the world’s stock markets, owning almost 1.5% of all shares in the world’s listed companies – and seven of the 29 globally systemically important banks.
“This is a milestone moment for Nature finance and for corporate reporting,” says David Craig, co-chair of the TNFD and former founder and CEO of Refinitiv. “As climate-related sustainability reporting goes mainstream through the new International Sustainability Standards Board standards and regulation in a growing number of countries, this is a clear signal that investors, lenders, insurers and companies are recognizing that their business models and portfolios are highly dependent on both nature and climate, and need to be treated as both strategic risks and investment opportunities.”