HSBC, BlackRock, Nestle to help design nature-driven risk framework

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  • TNFD lists executives of up to 35 companies
  • TNFD aims to have draft framework ready by early 2022
  • To move capital away from activity which is harmful to nature
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LONDON, Sept 30 (Businesshala) – HSBC (HSBA.L), BlackRock (BLK.N) and Swiss Re (SRNHS) are among companies that have adopted a risk management and disclosure framework aimed at diverting capital away from activities. seeking to make. damage to nature.

The Task Force on Financial Disclosure (TNFD) related to nature was launched in June to tackle damages of nature, which it says pose significant risks to corporate and financial stability. It said on Thursday that senior executives of up to 35 companies will aim to prepare a new draft framework for launch in early 2022.

The TNFD will be voluntary and aims to follow in the footsteps of the Task Force on Climate-Related Financial Disclosure (TCFD), championed by UN climate envoy Mark Carney and which is increasingly being made mandatory.

While the TCFD requires companies to disclose risks associated with climate change, such as the impact of rising sea levels on a factory located near the coast, many of which are also linked to nature, the TNFD is within its scope and Will go ahead

Nature-related issues that could affect the company’s share price include deforestation, water shortages or a potential hit to food producers if a decline in bee numbers affects the pollination of plants on which they rely. We do.

Along with other taskforce members, including Nestlé (NESN.S), Citi (CN) and Holcim (HOLN.S), over 200 institutions have expressed interest in joining the TNFD Forum, which assists in the work of the taskforce. Will do

“The business and financial world’s race towards net zero emissions will only succeed if they race equally fast towards nature-positivity,” TNFD co-chairs Elizabeth Maremma and David Craig said in a statement.

Each taskforce member will be part of one of five working groups focused on defining risks related to nature, assessing available data, looking at current standards and metrics, developing a beta framework and conducting pilot tests.

Harry Cho, Head of Sustainability and Sustainable Finance, Singapore Exchange, said, “The financial rationale for managing risks related to nature is now increasingly clear, but in practice the information to identify and act on risks is not readily available. “

Reporting by Simon Jessop; Editing by Alexander Smith

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