Taskforce on nature-related financial disclosures launched
Source: Middle East Insurance Review | Jul 2021
A new market-led initiative Taskforce on Nature-related Financial Disclosures (TNFD) to support financial institutions and corporates in assessing and managing emerging nature-related risks and opportunities has been launched.
The TNFD will help organisations report on their vulnerability to risks such as new legal liabilities related to nature. Launched in June 2021, TNFD will enable corporates, investors, lenders and insurance underwriters to shift finance towards firms and projects that protect and enhance nature, building on the success of the Taskforce on Climate-related Financial Disclosures (TCFD).
The new initiative comes after research found that more than half of the world’s economic output is dependent on nature and nature-positive transitions could generate up to $10.1tn in annual business value and will create 395m jobs by 2030.
Operating in parallel with the TCFD, the role of the new government-funded TNFD will be to establish a framework to support businesses to make nature-related financial disclosures by the end of 2022.
The TNFD will consist of approximately 30 members, with an equal representation of financial institutions, corporates and data/service providers.
‘Market Insight: Insurance 2021 – The year ahead’ series published by law firm Clyde & Co in December 2020 said that over the longer term, the likely inability of nature-damaging companies to attract finance will impact the investment side of the (re)insurance balance sheet. M