Photo Source: Robin Kennish
Authors:
Dr Robin Kennish, Asia Lead – Renewables & Climate Change Services
Summer Chen, Principal Consultant – Climate Change & Nature
Nature is a crucial economic asset that is rapidly disappearing. More than $44 trillion in economic value, over half of global GDP, relies on nature. Current trends could lead to a $225 billion GDP loss by 2030. There is no doubt that business and nature are inextricably linked. This linkage is especially critical for businesses that rely on natural resources (e.g., water, sand, and metals) and ecosystem services (e.g., pollination, water purification, and carbon storage).
Company stakeholders, including investors, are becoming increasingly aware that nature-related risks and opportunities are critical to maintaining business operations and competitiveness. Consequently, the pressure on businesses for nature-related corporate disclosures is rising. Just as the Task Force on Climate-related Financial Disclosures (TCFD) Framework supports more comprehensive reporting on climate, the Taskforce on Nature-related Financial Disclosures (TNFD) will help guide companies in disclosing information related to nature-related risks and opportunities.
Photo Source: Robin Kennish
In 2021, a group of NGOs and multilateral organizations launched the TNFD, building upon TCFD by developing a parallel framework for nature-related risks and opportunities. ERM has been on the frontlines of the TNFD’s development, working in-house to support the World Business Council for Sustainable Development (WBCSD), one of six official TNFD piloting partners, with its TNFD pilot program. This pilot program has been ongoing since October 2022 and is currently finalizing its feedback and outputs.
Leading companies are now setting clear strategies, quantifying baselines, and establishing robust governance for nature programs. They prepare for business model shifts to ensure long-term resilience. All companies reliant on nature can take steps: map value chains, identify reliance on ecosystem services, and develop strategies aligned with science-based targets. Partnerships with stakeholders facilitate strategy implementation, innovation, due diligence, and nature-positive investments.
Photo Source: Robin Kennish
At ReThink HK 2023 ERM’s Asia Lead for Corporate Sustainability and Climate Change, Yulia Dobrolyubova will be moderating what promises to be a fascinating discussion with Hong Kong corporates on The Case for Biodiversity Risk and Impact Disclosures.
For more on ERMs latest thoughts on the TNFD please see here: https://www.sustainability.com/thinking/the-nature-agenda-a-view-from-the-frontlines-of-tnfd-piloting/
ERMs own Nature Disclosure this year is presented in our 2023 Sustainability Report here: https://www.erm.com/globalassets/sr2023/erm-sustainability-report-2023-approach-to-nature.pdf