July 2, 2022
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Finance faces new nature-positive disclosure requirements

Finance faces new nature-positive disclosure requirements

DAVOS, Switzerland — Monetary companies already fighting climate-compliance as a consequence of unclear measurement metrics will quickly face new disclosure requirements for biodiversity, or nature-related, investments. 

“Nature is a financial risk for business,” Elizabeth Mrema, co-chair of the Taskforce on Nature-related Monetary Disclosures (TNFD), advised the Reuters World Markets Discussion board, including that $10 trillion is accrued yearly from nature. 

The TNFD working group is placing collectively metrics to measure biodiversity targets in session with trade and monetary establishments. Its post-2020 Biodiversity Framework is anticipated to be adopted later this yr. 

“It’s about accountability. You cannot improve what you cannot measure. What gets measured gets done. We need that robust measurement system,” stated Daniel Stander, deputy chair of the Resilient Cities Community. 

The framework will ask monetary establishments and company our bodies to shift their monetary flows from nature-negative to nature-positive outcomes. 

One other metric will ask the non-public sector to repurpose and redirect dangerous subsidies, value over $500 billion a yr. 

“Biodiversity is getting higher on the agenda,” stated David Knibbe, CEO of Dutch insurer NN Group NV, which has 200 billion euros ($214 billion) in property beneath administration and is energetic in sustainable finance. 

“If we get biodiversity problems, let’s say the ecosystem is being disturbed, that could lead to food shortages and instability,” Mr. Knibbe stated, including that NN plans to have interaction with corporations in order that the insurer can observe their progress. 

“The good news is quite a few of the biodiversity projects go hand-in-hand with the climate projects,” Mr. Knibbe stated. — Reuters

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