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 voluntary, or mandatory, to the emerging nature risk narrative; and to assess institutional, policy and regulatory gaps and opportunities for readiness of disclosure of nature-related financial disclosures in South Africa; assessment of the institutional arrangements and readiness, capacity, and competency of national and local economic agents for nature-related reporting, and provide recommendations on nature-related reporting integration into the South African finance sector.
