“We welcome today’s launch of the Taskforce on Nature-related Financial Disclosures, with the appointment of its co-chairs. The TNFD is an exciting opportunity for a unified global response to the crisis of nature loss, which CDP is supporting.
Private Sector Addressing Global Challenges
There is a growing recognition that the financial world is not separate from the natural world.
Water pollution and scarcity, deforestation and biodiversity loss are urgent global challenges, that the private sector plays a vital role in addressing.
And yet private sector transparency and reporting, as well as levels of action and ambition, have up until now lagged far behind climate change.
We’re encouraged to see the growing understanding that these challenges are all inextricably linked.
Companies are exposed to increasing risk from their impact on nature loss — as are the financial institutions that invest in, lend to or insure them. For the health of our economies and societies, the private sector needs to better incorporate nature into their decision-making; shifting finance away from destructive activities and towards the transition to a truly sustainable economy.
The Role Of TNFD
The new TNFD will help galvanize this necessary shift, and support companies in facing up to the material risks that destruction of nature poses to business — and seizing the opportunities promised by a nature-positive economy.
Environmental disclosure through CDP has become a business norm over the last 20 years, with over 10,000 organizations representing over 50% of global market value disclosing through CDP questionnaires, which are aligned with the TCFD recommendations.
For over a decade now CDP has been driving nature-related disclosure through our water security and forests questionnaires, with over 2,900+ and 680+ companies disclosing through these in 2020 respectively, at record levels. We are excited to apply our experience in support of the TNFD that in turn, will accelerate disclosure and action, as the TCFD has done for climate change.
Over the next few years, CDP will be evolving our disclosure system to capture the relevant data needed by the market to benchmark the transition to a sustainable net-zero economy. As part of this, CDP is expanding its work to accelerate the protection and restoration of nature, for example by working with BNPP AM and partners on the integration of common biodiversity metrics for corporate reporting.
Standardised disclosure on nature impacts is critically important and now is the time for all companies to disclose their environmental data to build momentum for COP26 and drive a resilient Green Recovery from COVID-19.”
Article by Nicolette Bartlett, Executive director, CDP