Nordic Investors Embrace TNFD

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    Stockholm (NordSIP) – The popularity of the Taskforce on Nature-related Financial Disclosures (TNFD) has been growing steadily since its launch in June 2021. At the annual meeting of the World Economic Forum in Davos on 16 January, TNFD took the opportunity to showcase the success of the initiative so far. According to the announcement, 320 organisations from over 46 countries have now committed to start making nature-related disclosures based on the TNFD Recommendations published in September last year.

    The list of early adopters features over 100 financial institutions, including some of the world’s largest asset owners and managers, representing USD 14 trillion in assets under management. Many banks, insurers, and other leading market intermediaries such as stock exchanges and audit and accounting firms have also joined the initiative. What they are committing to is to begin adopting the TNFD Recommendations and publishing duly aligned disclosures as part of their annual corporate reporting no later than 2025.

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    “This is a milestone moment for Nature finance and for corporate reporting,” comments 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 (ISSB) standards and regulation in a growing number of countries, this is a clear signal that investors, lenders, insurers, and companies are recognising 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. We are delighted to see such a strong, diverse, and international group of companies and financial institutions step forward only four months after the release of our recommendations and look forward to even more stepping forward over the coming months”.

    Notable among the cohort of early adopters is Norges Bank Investment Management (NBIM), the largest single owner in the world’s stock markets, owning almost 1.5% of all shares in the world’s listed companies. “Addressing nature-related financial risks has been a longstanding priority on our ownership agenda at Norges Bank Investment Management,” comments Carine Smith Ihenacho, Chief Governance & Compliance Officer of NBIM. “As active contributors to the Taskforce on Nature-related Financial Disclosures (TNFD), we are committed to leveraging this tool to deepen our understanding of our portfolio’s nature-related impacts and dependencies, further reinforcing our responsible investment efforts in this important area.”

    Other Nordic investors on the list include three of Sweden’s AP Funds (AP2, AP3, and AP7), East Capital Group, Danish PKA, Norwegian Storebrand Asset Management, and Finland-based CapMan Group, Evli Plc, and Sitra.

    “Nature loss is one of the biggest challenges facing humanity, deeply connected with the climate crisis, and growing social inequality around the world,” reads a statement from another Nordic early adopter, Ingka Group. Jesper Brodin, CEO of Ingka Group I IKEA, and Jon Abrahamsson Ring, CEO of Inter IKEA Group explain that the reason to adopt TNFD early on is the realisation that nature urgently needs attention and collaboration. “We see nature-related issues as a strategic business issue and believe the TNFD recommendations and guidance will support us in further assessing risks and opportunities and allowing more targeted positive action. We also know that our future relevance, success, and resilience of our business is directly linked to how we address this now, in order to prepare for the future generations.”

    Image courtesy of NordSIP
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