Finance faces new nature-positive disclosure requirements

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DAVOS, Switzerland, May 26 (Reuters) – Financial firms already struggling with climate compliance due to unclear measurement measures will soon face new disclosure requirements for biodiversity or nature-related investments.

“Nature is a financial risk for businesses,” Elizabeth Mrema, co-chair of the Nature-Related Financial Disclosures (TNFD) Task Force, told the Reuters Global Markets Forum, adding that $10 trillion is accrued each year. year thanks to nature.

The TNFD working group is setting metrics to measure biodiversity targets in consultation with industry and financial institutions. Its post-2020 biodiversity framework is expected to be adopted later this year.

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“It’s about accountability. You can’t improve what you can’t measure. What gets measured gets done. We need this robust measurement system,” said Daniel Stander, vice president of Resilient Cities Network.

The framework will require financial institutions and corporations to shift their financial flows from nature-negative to nature-positive outcomes.

Another measure will ask the private sector to redirect and redirect harmful subsidies, worth more than $500 billion a year.

“Biodiversity is becoming a priority,” said David Knibbe, CEO of Dutch insurer NN Group NV (NN.AS), which has 200 billion euros ($214 billion) in assets under management and is active in sustainable finance.

“If we have biodiversity issues, let’s say the ecosystem is disrupted, it could lead to food shortages and instability,” Knibbe said, adding that NN plans to engage with companies so the insurer can follow up. their progress.

“The good news is that many of the biodiversity projects go hand in hand with climate projects,” Knibbe said.

(These interviews were conducted as part of the Reuters Global Markets Forum. Join GMF on Refinitiv Messenger: https://refini.tv/33uoFoQ)

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Reporting by Divya Chowdhury and Jessica DiNapoli in Davos; Editing by Alexander Smith

Our standards: The Thomson Reuters Trust Principles.

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