Inception Workshop to Assess Madagascar's Readiness to Disclose Financial Information Relating to Nature

Antananarivo, 24 July 2024 - Madagascar, with its unique biodiversity representing around 5% of the world's biodiversity, has taken a crucial step towards the sustainable management of its natural resources. On 24 July 2024, in Antananarivo, a workshop was held to launch the "Assessment of Madagascar's Readiness for Nature-related Financial Disclosure" supported by the UNDP Biodiversity Finance Initiative (UNDP-BIOFIN).

The interdependence between the global economy and nature is undeniable, with almost half of the world's gross domestic product (44,000 billion dollars) based on nature and its services. The risks associated with biodiversity loss are now recognized by central banks as systemic threats comparable to climate change. Madagascar's economy, with its exceptional biodiversity of flora and fauna, is closely linked to these natural resources.

The BIOFIN programme, a global initiative led by the UNDP, is working with various countries, including Madagascar, to improve the financing of biodiversity. The aim is to create an environment conducive to the adoption of a nature-related financial disclosure framework, inspired by the Taskforce on Nature-related Financial Disclosures (TNFD).

The TNFD (Taskforce on Nature-related Financial Disclosures) was established in 2021 in response to the growing need to consider nature in financial and business decisions. It is a global market-led initiative supported by the UNDP, which aims to develop and provide a risk management and disclosure framework for organisations to report and act on nature-related risks and opportunities. The TNFD framework helps companies and financial institutions assess and report on their impacts on nature, thereby promoting positive environmental outcomes. By adopting this framework, companies can not only better manage their environmental risks, but also identify new opportunities for sustainable growth.

The purpose of the launch workshop was to present the objectives of the study, which aims to assess Madagascar's level of preparedness for the disclosure of financial information linked to nature.

The workshop provided an opportunity to deepen stakeholders' understanding of the needs in terms of disclosure of financial information related to nature, and the crucial role of the private and financial sector in biodiversity conservation. The workshop provided an opportunity to start thinking about the subject.

The workshop was chaired by :

• The Secretary General of the Ministry of the Economy and Finance
• The Secretary General of the Commission de Supervision Bancaire et Financière (CSBF)
• The Director of the Sustainable Financing Mechanism, representing the Ministry of the Environment and Sustainable Development
• UNDP Resident Representative

The UNDP Resident Representative said: "We know that the world's biodiversity is at risk, and conserving our ecosystems requires considerable financial resources. The financial gap for biodiversity is alarming, but through the BIOFIN initiative, we are working to bridge this gap by identifying and implementing innovative and effective financing mechanisms," said the UNDP Resident Representative in Madagascar, Ms Natasha van Rijn.

The Secretary General of the Ministry of the Economy and Finance, Andry Ramanampanoharana, added: "The decline in biodiversity and the degradation of ecosystems represent major risks for our economy. By adopting a more transparent framework on their dependencies and impacts on nature, businesses and investors can not only better manage their environmental risks, but also identify new opportunities for sustainable growth, thereby ensuring their resilience and long-term success".