How can organisations grow with nature?

The pressure on our natural environment has increased substantially overtime. Halting and preserving nature and its capacity to contribute to sustainable economic growth is a significant challenge, bringing with it significant risks to corporate and financial stability, but also opportunities.

All businesses depend on nature and its services either directly or through their supply chains, and those businesses that are highly reliant on nature are considered ‘most at risk’ from the consequences of nature degradation and biodiversity loss. 

The Taskforce on Nature-related Financial Disclosures (TNFD) has released its first prototype framework and recommendations on how organizations can report on their exposure to nature-related risks. This means embedding these risks into their strategies, operations, risk management, metrics and targets.

Given the complexity of this task, early action is recommended. Even before the final release of the TNFD framework in September 2023, there are steps organizations can take now to give them a head start in measuring and managing nature-related risk.
 

The Taskforce on Nature-related Financial Disclosures (TNFD) was established in response to the growing acknowledgement that nature should be factored into financial and business decisions. The TNFD is a global, market-driven, science-led and government-backed initiative which aims to:

• develop a practical and consistent risk management and disclosure framework that enables corporates and financial institutions to assess, manage and report on their dependencies and impacts on nature;
• help assess nature-related risks and opportunities; with the ultimate goal to
• support a re-direction of global financial flows away from activities that harm nature, and towards activities that benefit nature.

Nature’s contribution to the global economy is estimated to be US$125 trillion per year, while over 50 percent of the world’s GDP (US$44 trillion) is moderately or highly dependent on nature and its services.1 Yet, investors, businesses and policy makers continually fail to recognize nature’s true worth in their decisions and practice. All businesses depend on nature and its services either directly or through their supply chains, and those businesses that are highly reliant on nature are considered ‘most at risk’ from the consequences of nature degradation and biodiversity loss. Business and investment activities can directly and indirectly drive nature loss, which creates risks — and opportunities — for business and society. In order to continue to survive and thrive, we need to protect and regenerate our natural assets.