Submitted by H. Hutton on Thu, 27/01/2022 - 10:20
27 January 2022 - CISL is joining a multi-disciplinary group of leading international organisations to partner with the Taskforce on Nature-related Financial Disclosures (TNFD). The partnership will focus on the task of developing an integrated risk management and disclosure framework for nature-related financial risk.
Building on the expertise and existing definitions, data, analytical tools, and disclosure standards developed by knowledge partners, the TNFD framework will provide companies and investors with decision-useful information to help shift the flow of global capital to nature-positive outcomes.
CISL’s work will contribute expertise across scientific disciplines, market practice and the development of nature-risk scenarios to advise the Taskforce, comprising of 34 senior executives from across finance, business and market service providers.
Nina Seega, Research Director for Sustainable Finance, CISL said:
“Building on CISL’s long standing stream of work with corporates and financial firms on nature-related financial risks and impacts we are pleased to support TNFD as a core knowledge partner. Together we will work to bring nature considerations into every financial decision,”
The participation and collective experience of this group reflects the commitment of the TNFD to build on existing expertise and initiatives, and to incorporate the best available scientific knowledge and established market practice relating to risk management and disclosure.
This initial group of knowledge partners are:
- Agence Française de Développement (AFD)
- CDP
- Cambridge Institute for Sustainability Leadership (CISL)
- Global Reporting Initiative (GRI)
- International Union for Conservation of Nature (IUCN)
- Network for Greening the Financial System (NGFS)
- SASB Standards Research Team
- Science Based Targets Network (SBTN)
- The Capitals Coalition
- UNEP World Conservation Monitoring Centre (UNEP-WCMC)
- UNSD
- The World Business Council for Sustainable Development (WBCSD)
- WWF
The TNFD is also drawing on the scientific work of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES).
TNFD’s Technical Director, Emily McKenzie, said:
“Being market-led, science-based and incorporating existing research and market practice are three of our core principles. I am delighted that TNFD will benefit from the extensive expertise of such a strong, experienced and multi-disciplinary group of organisations.”
These knowledge partners are already supporting the five Working Groups under way with our efforts to build an initial beta version of the TNFD framework. We look forward to releasing this beta version of the framework in March and working with further partners later this year as we move into the pilot testing and consultation phase.”
This announcement comes as CISL publishes new analysis with Asset Manager, Robeco, How land degradation amplifies the financial vulnerability of listed companies in agricultural value chains, which highlights how the vulnerability of degraded soil to extreme weather can pose financial risks to agricultural value chains - risks that are not currently integrated into investment decisions.
Carola van Lamoen, Head of Sustainable Investing, Robeco said:
“Integrating nature-related risks in our investment decisions is an important part of our biodiversity roadmap. The case study we did with CISL will help us in our journey towards translating nature risk into valuations. We hope and trust the study supports further development of frameworks, such as those of the Taskforce Nature Financial Disclosures (TNFD), to integrate biodiversity in financial decision-making,”
Find out more about our work with banks and asset managers to identify the financial risks of nature loss
