Driving Action on Target 15: Leveraging the Power of Nature-Related Financial Disclosures

22 October 2024, Cali, Colombia – The closed government briefing “Moving to Action on Target 15: Leveraging the Recommendations of the TNFD",” organized by the Taskforce on Nature-related Financial Disclosures (TNFD) in partnership with UNDP and UNEP at Biodiversity COP16, brought together key stakeholders to advance discussions on nature-related financial disclosures and public policy alignment. The event provided an important platform to explore the operationalization of Target 15 of the Global Biodiversity Framework (GBF), and how the TNFD recommendations have informed reporting standards and requirements in place, as those of the International Sustainability Standards Board (ISSB), the Global Reporting Initiative (GRI) and the Corporate Sustainability Reporting Directive (CSRD) in Europe. 

Inka Gnittke, Deputy Director General of the Nature Conservation Department at the German BMUV, emphasized that the TNFD is central to ensuring that nature is integrated as an important economic factor and not treated as an externality. She emphasized the importance of accountability, risk management and alignment with global standards, explaining that the TNFD equips companies with the tools they need to value ecosystem services as critical economic components. This alignment, Gnittke said, is essential to mitigate both financial and reputational risks associated with biodiversity while creating opportunities for businesses and economies. Germany, she assured, remains committed to supporting TNFD as a pathway to a resilient, nature-positive economy.

Emily McKenzie, Technical Director of TNFD, gave a comprehensive overview of TNFD's progress, pointing out that in just 14 months, over 500 organizations have adopted the framework. The alignment of TNFD with existing standards such as ISSB and GRI ensures that it remains a comprehensive and practical tool for implementing Target 15 of the GBF, which calls on countries to assess and disclose their impacts on nature. The TNFD’s 14 recommended disclosures, which align with the Task Force on Climate-related Financial Disclosures (TCFD), further simplify reporting requirements across multiple frameworks. McKenzie also announced the upcoming release of a discussion paper on transition plans, which will provide deeper insights into TNFD’s evolving role in supporting nature-positive transitions.

Abyd Karmali, Managing Director of Environmental Business Advisory at Bank of America, discussed how disclosure must go beyond compliance to actively drive the transition to a nature-positive economy. He emphasized that TNFD’s holistic framework, which is already stimulating a reallocation of capital towards nature-based investments, is not just a temporary trend, but part of a larger, secular transformation in the market. This shift can be seen in the increasing presence of nature-based funds and sustainability-linked debt instruments. However, Karmali pointed out that organizations face significant capacity challenges in effectively implementing the TNFD recommendations and called on both companies and governments to work more closely together to enable this change.

Midori Paxton, Director of the UNDP Nature Hub, highlighted the crucial role of the UNDP in supporting the rapid implementation of the TNFD and emphasized the importance of collaboration between the public and private sectors to achieve systemic change. She pointed out that UNDP is working with TNFD in collaboration with the University of Cambridge Institute for Sustainability Leadership (CISL) on capacity-building initiatives funded by Germany to provide training materials. These materials are designed to help companies and financial institutions strengthen their internal capacity to implement nature-based disclosures. Paxton emphasized that action at the government level is essential and referred to the efforts of the BIOFIN initiative to establish national capacity-building programs and promote dialogue between government and business.

A call for accelerated action

At the end of the discussions, it was agreed that TNFD is well on its way to becoming a cornerstone in the transition to a nature-based global economy. Ongoing efforts to harmonize reporting standards and build market capacity are laying the foundation for more sustainable financial practices. However, as the keynote speakers at the briefing emphasized, there is no time to lose — governments and businesses must act now to seize the opportunities presented by the TNFD, with Target 15 serving as a unique catalyst for systemic change.

The event emphasized the importance of collaboration between the public and private sectors and the need for a robust government framework to accelerate the adoption of nature-based financial disclosures. The TNFD recommendations, if fully implemented, have the potential to reshape markets and make significant progress toward a nature-positive future.

Photo: UNDP BIOFIN delegations from Botswana and Zambia discussed strategies and opportunities to mainstream TNFD adoption in developing countries with Tony Goldner, Executive Director of TNFD. Notably, Botswana has become the first country in the world to introduce TNFD-aligned disclosure guidance for companies listed on its national stock exchange. This sets a strong example of how emerging and developing countries are taking the lead on nature-related financial disclosures, moving early to prepare their companies for data sharing and reporting requirements along global supply chains.