Seven of the world’s largest economies have backed a new global financial reporting standard designed to measure corporate impacts on nature and biodiversity.
The G7 last week announced its support for the Taskforce on Nature-related Financial Disclosures (TNFD), a new international body.
The global initiative will provide insight for financial institutions into emerging environmental risks and opportunities. The body’s co-chairs are Elizabeth Maruma Mrema, executive secretary of the UN Convention on Biological Diversity, David Craig, CEO of Refinitiv and group leader of the data and analytics division at the London Stock Exchange Group.
The framework will build on the success of the Task Force on Climate-related Financial Disclosures, which has gained significant traction in the past few years to improve and increase reporting of climate-related financial information.
Craig said: “Biodiversity and nature loss is a global crisis… Data gaps currently prevent financial institutions from assessing their nature-related risks. Better information will accelerate the understanding of these issues and support a shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes.”
Separately, the Global Reporting Initiative (GRI) has announced an updated and revised biodiversity standard for sustainability reporting. Supporters of the standard include KPMG, environmental services company Ambipar, and philanthropic organisation One Earth.
The GRI’s Sustainability Reporting Standards aim to develop consistent reporting across companies and industries, while providing clearer communication to stakeholders.
At least 2,000 organisations use the initiative’s current biodiversity standard, according to the GRI’s website. It has also developed reporting standards for anti-corruption practices, tax, and emissions.
Biodiversity is coming under more scrutiny from standard-setting bodies. Last year, the International Organization for Standardization dedicated a committee of experts to encourage government and businesses to embed biodiversity issues into their decision making and actions.