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HSBC, BlackRock and Nestlé will help design a nature-focused risk framework

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  • TNFD recruits executives from up to 35 companies
  • TNFD aims for a framework project by early 2022
  • To keep capital away from activities harmful to nature

LONDON, Sept. 30 (Reuters) – HSBC (HSBA.L), BlackRock (BLK.N) and Swiss Re (SRENH.S) are among companies seeking to create a risk management and disclosure framework aimed at embezzling capital activities that damage nature.

The Nature-Related Financial Disclosures (TNFD) Task Force was launched in June to tackle the loss of nature, which it says poses a significant risk to business and financial stability. He said on Thursday that senior executives from up to 35 companies would aim to create the new framework project to launch in early 2022.

The TNFD will be voluntary and aims to follow in the footsteps of the Taskforce on Climate-Related Financial Disclosures (TCFD), championed by United Nations climate envoy Mark Carney and which is increasingly made mandatory.

While TCFD requires companies to disclose climate change risks, such as the impact of sea level rise on a factory near the coast, many of which are also related to nature, TNFD will go further in its scope.

Nature-related issues that could affect a company’s stock price include those such as deforestation, water shortages, or the potential blow to food producers if declining bee numbers have an impact. on the pollination of the plants on which they depend.

Besides the other members of the working group, which also include Nestlé (NESN.S), Citi (CN) and Holcim (HOLN.S), 200 other institutions have expressed interest in joining the TNFD Forum, which will help the group’s work. of work.

“The race of business and finance to net zero emissions will only succeed if they run so quickly to the positive nature,” TNFD co-chairs Elizabeth Mrema and David Craig said in a statement.

Each member of the working group would be part of one of five working groups focused on defining nature risks, assessing available data, reviewing current standards and measures, developing the beta framework, and its pilot test.

“The financial rationale for managing nature-related risks is increasingly clear now, but the information to identify and act on risks in practice is not readily available,” said Herry Cho, Head of Sustainability and Sustainable Finance, Singapore Exchange.

Reporting by Simon Jessop; Editing by Alexander Smith

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