Nature Financial Disclosure Readiness: Policy and Institutional Review in South Africa

This report provides a perspective of the general institutional readiness of the South African financial sector in responding voluntarily, or mandatory, to the emerging nature risk narrative.

Over the last three to five years there has been a rapidly emerging narrative around the materiality of nature-related risks and impacts globally. In support of this narrative, which together with climate change, is seen as ‘two-sides of the same coin’, robust nature-related risk management and disclosure frameworks such as the Taskforce on Nature-related Financial Disclosures (TNFD) have been launched to support a shift towards more nature-positive business practices and outcomes (TNFD, 2022). Such frameworks are intended to provide a practical guideline that can be applied broadly in a variety of sectors and business activities.

This report provides a perspective of the general institutional readiness of the South African financial sector in responding voluntarily, or mandatory, to the emerging nature risk narrative.

The report includes:

• An assessment of institutional, policy and regulatory gaps and opportunities for readiness of disclosure of nature-related financial disclosures in South Africa.
• An assessment of the institutional arrangements and readiness, capacity, and competency of national and local economic agents for nature-related reporting; and
• Recommendations on nature-related reporting integration into the South African finance sector.

Please find the recording of the launch event of the report here: