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    COP16 Update: Big Boost to Nature Disclosure

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    Stockholm (NordSIP) – More than 500 organisations have committed to nature-related corporate reporting and risk management.  The Taskforce on Nature-related Financial Disclosures (TNFD) took the opportunity to announce this sharp increase in signatories at COP16 in Cali, Colombia on 25 October 2024.

    This 57% increase in the number of TNFD signatories bring the total assets under management in line for TNFD-compliant reporting to $17.7 trillion.  The task force’s aim is to encourage the implementation of a disclosure and assessment framework that is aligned with the goals of the Kunming-Montreal Global Biodiversity Framework (GBF), Target 15 of which calls on governments to introduce requirements for corporate reporting of nature-related dependencies, impacts and risks by 2030.

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    The TNFD adopters are based in 54 different countries, with roughly half of these in the developing world.  They include corporations from 62 of the 77 SASB Sustainable Industry Classification System (SICS) sectors, as well as 129 financial institutions.  Among the new adopter, who have stated 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 are abrdn, Manulife Investment Management, and companies including Qantas, Mitsubishi Electric, and Electrobras.

    Nordic institutional investors feature among the TNFD’s earliest adopters.  These include Sweden’s AP2, AP7, and Vasakronan, Denmark’s PKA, Iceland’s Landsbankinn, and Finland’s Varma, EVLI, and CapMan Group.

    Commenting on the announcement David Craig, Co-Chair of the TNFD said: “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.”

    COP16 – the 16th Conference of the Parties to the Convention on Biological Diversity continues in Cali, Colombia until Friday 1 November 2024.

    Image courtesy of Makalu on Pixabay
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