A larger global initiative is the Taskforce on Nature-related Financial Disclosures (TNFD), which will release a final framework in September this year for organisations to report and act on evolving nature-related risks. The aim of the framework is to support a shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes.

Deloitte’s Asia-Pacific and Global Nature Lead, Guy Williams, one of 40 taskforce members developing the TNFD framework, says there are already more than 250 global companies actively testing and piloting the framework before its September release. Of these, a number are from Australia including Westpac, BHP and Stockland.

While the journey to reporting and acting on nature-related risks and opportunities will not be without its challenges, says Williams, piloting organisations have found that they are able to build on work they have or are already doing, including work around climate.

“We know that this could take some time to work through, particularly for organisations who have not historically considered their connection to nature, such as financial institutions and companies with complex supply chains.

“But the trick is to start now, and work towards it. Step one will be to understand where you are interacting with – impacting and depending upon – nature. Being able to pinpoint specific locations, and understand your overall nature footprint, is essential to getting a proper view of the risks and opportunities,” Williams says.

Westpac’s associate director, ESG at Westpac Institutional Bank, Joshua Finfer says some businesses are already looking at what their footprint is.

“They are using systems and tools such as spatial mapping and partnering with organisations where measuring biodiversity and nature are part of their business-as-usual operations,” says Finfer.

“Companies currently collect significant amounts of data. One of the challenges is repurposing this existing data collection and identifying the gaps to fill to report against the TNFD’s core global metrics.”

Nature loss is complex and measuring impacts of solutions is still maturing.

“However, nature-based solutions are starting to be innovatively linked to finance, such as our sustainability linked loan to North Queensland Airports,” Finfer says.

According to North Queensland Airports (NQA) chief executive officer, Richard Barker, biodiversity risk is included in the company’s corporate risk register and protection is one of NQA’s strategic goals.

Barker says the strategy was set in 2021 and included a progressive biodiversity target.

“The target was updated in 2022 when NQA signed a sustainability linked loan (SLL) agreement that included biodiversity KPIs,” says Barker.

According to Barker, the SLL enabled NQA to build on the existing strategic target to increase its ability to protect and enhance habitat for threatened species within airport landholdings.

As for how NQA’s biodiversity goals are measured as part of the SLL, Barker says the targets include quantifiable metrics for success, including the number of threatened wildlife lost (aircraft strikes), habitat change and completion of agreed actions.

“Furthermore, a qualified, independent second party opinion provider is engaged to evaluate the program’s implementation and NQA is looking at the utilisation of the newly established TNFD framework to provide further evaluation,” Barker says.

Other local leaders in the space include Coles who have committed $10 million in funding to help unlock the Great Barrier Reef’s blue carbon potential, increase biodiversity and accelerate scientific research.

Another is Blackmores, who teamed up with the World Wildlife Fund to help fund a fisheries improvement project for a Peruvian anchovy fishery to help the fishery move towards Marine Stewardship Council certification.

Deloitte’s Williams says Blackmores is an example of a company which has recognised the need to ensure we maintain and revitalise nature.

“For Blackmores, the business case is clear: they know the benefits they derive from nature, as a core ingredient in its products,” says Williams.

“They can see potential reputational risk or shareholder pressure around better understanding of nature-related risks, as well as the clear opportunities from investing in nature.

“But all organisations depend, directly or indirectly, on the assets and services nature provides – there is a business case for them too, and this is beginning to be better understood.”

Westpac’s Chen says Westpac understands that over half of the world’s economy is “moderately or highly dependent on nature”.

“The bank has started to assess how this applies to its own business context and operations – including considering how exposed it is to sectors that are dependent and impactful on nature,” says Chen.

With more focus on nature, expectations on businesses to manage nature risk and opportunities will continue to increase, he says.