According to the World Economic Forum
, $44 trillion of economic value generation – over half the world’s total GDP – is moderately or highly dependent on nature and its services and, as a result, exposed to risks from nature loss.
With nature in freefall
, the financial system faces systemic risks and instability - but the risks and impacts are rarely measured or disclosed, and largely excluded from corporate and financial decision-making, regulation and supervision.
That's why in 2019, WWF and AXA submitted a report
to G7 Environment Ministers, calling for the establishment of a taskforce on how to measure nature-related financial risk, and in 2020, an initiative to establish the Taskforce on Nature-related Financial Disclosure
(TNFD) was announced by Global Canopy, UNDP, UNEP Finance Initiative and WWF.
Today, TNFD's recommendations
, launched in September 2023 after extensive consultation and development, enable companies and financial institutions to disclose nature-related dependencies, impacts, risks and opportunities, and will help shift global financial flows toward nature-positive outcomes
that deliver on the Kunming-Montreal Global Biodiversity Framework.
TNFD's recommendations build on those of the Task Force on Climate-related Financial Disclosures
(TCFD) and are consistent with the global sustainability standards of the International Sustainability Standards Board (ISSB) and the impact materiality approach used by the GRI and incorporated into the European Sustainability Reporting Standards. This provides reporting organisations with a set of nature-related guidance that enables their reporting requirements across jurisdictions with the different approaches to materiality now in use.