ALLCOT accepted as a member of the TNFD – Taskforce on Nature-related financial disclosures
ALLCOT is now one of more than 1,000 institutions from 54 countries working under the leadership of TNFD. Their common goal is to build a framework for financial institutions and companies to make them able to understand how nature affects – positively or negatively – the financial performance of organizations.
According to TNFD – Taskforce on Nature-related financial disclosures, the loss of nature poses risks and opportunities for businesses, now and in the future. More than half of the world’s economic output – US$44 trillion of economic value generation – is moderately or highly dependent on nature.
Similarly, TNDF asserts that, if organizations had a coherent risk framework, they could identify and manage these risks, as well as nature-related opportunities. Therefore, being able to generate positive transitions of up to US$10.1 trillion in annual business value by 2030.
The work of TNFD
Against this backdrop, TNFD, under an open innovation approach, encourages market participants and leading scientific and data organizations to support the development of the framework.
This approach makes the framework, now in its fourth beta version, scientifically rigorous and easy to adopt for both companies and financial institutions.
TNFD makes it clear that it is not developing a new standard, but creating an integrated framework that builds on existing standards, metrics and data similar to what was done with climate change through the recommendations of the TCFD – Taskforce on Climate-related Financial Disclosures since 2015.
ALLCOT’s role in the TNFD forum
ALLCOT will participate in the development and research to define the best process of evaluation and integration of biodiversity in financial and non-financial companies in favor of better financial decision making.
In the same way, ALLCOT will be able to participate in advisory activities to the TNFD Secretariat, training and community learning, as well as its own activities that will lead the Secretariat to achieve its objectives around the definition of standards, metrics and existing data in the market to facilitate its implementation.
ALLCOT thus joins a select group of leading market players, regulators and governments that already recognize TNFD as a key initiative to address this challenge, including the G7 Finance Ministers, the G20 Environment Ministers, the Network of Central Banks and Supervisors for the Greening of the Financial System (NGFS) and, of course, the 950 Forum institutions, Working Group members and knowledge partners.