Madagascar advances preparations for nature-related financial disclosures

Antananarivo, Madagascar, 19 December 2024 – The United Nations Development Programme's (UNDP) Biodiversity Finance Initiative (BIOFIN) in Madagascar organized a workshop for government and private partners to develop an action plan to prepare the country for nature-related financial disclosures.

UNDP BIOFIN aims to help countries identify, mobilize, and manage funding for biodiversity conservation and achieving environmental goals. Moïse Andry Rasamoelina, the General Secretary of the Ministry of Environment and Sustainable Development (MEDD) of Madagascar has reaffirmed the government’s commitment to this vision: “Biodiversity is not just about flora and fauna, it is about natural capital. And target 15 of the Kunming-Montreal Global Biodiversity Framework specifically includes financial aspects in biodiversity conservation.”

The workshop had two main objectives:

1. Assess Madagascar’s readiness for nature-related financial disclosures.
2. Validate the country’s action plan to advance this initiative.

These efforts are in line with the Taskforce on Nature-related Financial Disclosures (TNFD) framework, which supports companies and financial institutions to identify, assess and disclose nature-related risks and opportunities. By adopting the TNFD framework, Madagascar aims to promote the sustainable management of biodiversity and ecosystems in financial decision-making processes.

A preparatory study launched in July 2024 has identified the need for regulatory reforms in Madagascar’s financial system. These reforms would encourage credit institutions and other stakeholders to disclose nature-related information and adopt sustainable finance practices.

Among the key outcomes of today’s workshop were commitments from representatives of Madagascar's private sector to promote sustainable practices and integrate biodiversity management into their financial activities. The participants identified four key actions to prepare Madagascar for nature-related financial disclosures:

• Harmonization and standardization: introduce a common language for nature-related financial and non-financial information.
• Regulatory framework: Create and enforce regulations for disclosing nature-related non-financial information that are aligned with international standards.
• Integration of sustainable practices: Embedding sustainable biodiversity management practices and processes in the financial services industry.
• Stakeholder engagement and mechanisms: Identifying and engaging appropriate entities for the collection, assessment, certification and verification of environmental and nature-related information, including financial data, from the private sector.

The workshop represents a joint milestone towards achieving Madagascar’s environmental and financial goals. By fostering collaboration between public and private stakeholders, the country creates the conditions for a more sustainable future through biodiversity conservation and nature-based financial transparency.

Media contacts

Marie-Lys MORY- Communication Analyst External Relations and Advocacy UNDP Madagascar, Mobile: +261 32 23 655 29, Email: marie-lys.mory@undp.org