Macquarie joins task force on nature-related financial disclosures

Macquarie has joined a new initiative focused on nature-related financial disclosures and will help establish a framework to guide company reporting of biodiversity risks.

Macquarie Group has joined a new initiative focused on nature-related financial disclosures. Pictured are black spider monkeys in the Amazon rainforest. Picture: iStock

Macquarie Group has joined a new initiative focused on nature-related financial disclosures and will serve as one of 30 members tasked with establishing a framework to guide company reporting of biodiversity risks.

The Task force on Nature-related Financial Disclosures (TNFD), a G7-endorsed body established in June, will provide, by 2023, a framework for organisations to report and act on evolving nature risks and opportunities with an intended vision to work toward a nature-positive economy. A beta version of the framework will be launched in early 2022.

Senior executives from across global financial institutions, corporates and market service providers, including Macquarie’s head of agriculture Elizabeth O’Leary, will serve for two years as members of the task force to develop the framework.

The TNFD is looking to replicate the success of the Michael Bloomberg-chaired Task force on Climate-related Financial Disclosures, which was created in 2015 to help investors identify climate-related investment risks and opportunities.

The new task force is led by co-chairs Elizabeth Mrema, a United Nations assistant secretary-general, and David Craig, former CEO of financial data and software company Refinitiv.

“The business and financial world’s race towards net zero emissions will only succeed if they race equally fast towards nature-positivity,” Ms Mrema and Mr Craig said.

“While the importance and urgency of our work is clear, so is the complexity of the challenge ahead for the TNFD.”

Other members of the task force include representatives from BlackRock, HSBC, Swiss RE, UBS, Anglo American, Nestle and Tata Steel.

Nestle head of group risk management, Alison Bewick, said addressing nature-related risks was a business imperative for the company.

“We are already working on this within our organisation, but the complexity of the challenge requires collaboration.

“I’m looking forward to working with the other members and wider network of stakeholders to develop a framework that will enable organisations like ours to both manage risks and identify opportunities in the nature space.”

The task force members will next week meet for the first time to kick off their work on the framework.

The 30 members were selected for their sector and geographical coverage as well as subject-matter expertise. They also represent sectors with the largest impact and dependencies on nature, including agribusiness, the blue economy, food and beverage, mining, construction and infrastructure.

More than half of the world’s economic output – $US44tn of economic value generation – is dependent on nature, with nature loss representing a significant risk to corporate and financial stability, according to the task force.

“The TNFD initiative is by the market for the market,” Ms Mrema and Mr Craig said.

“Therefore, development of a practical framework for nature-related risks will only be achievable by bringing together market practitioners and experts in biodiversity, data, metrics and standards, risk management and disclosure frameworks into a unique collaborative endeavour.”