Mainboard-listed companies Frasers Property TQ5 Limited (FPL) and Seatrium have joined over 500 organisations from around the world in adopting the Taskforce on Nature-related Financial Disclosures’ (TNFD) recommendations.
These firms have committed to disclose their material nature-related issues to investors and other stakeholders in their annual corporate reporting for FY2025 or earlier.
At 502 companies, the total number of TNFD adopters has risen 57% since the first wave of “early adopters” — which include Singapore-listed companies United Overseas Bank U11 (UOB), Olam Agri and City Developments (CDL) — were unveiled in January.
Top Glove Corporation, which is headquartered in Malaysia and dual-listed in Malaysia and Singapore, is also a TNFD adopter.
Seatrium registered as a TNFD adopter in May. In a statement to The Edge Singapore, the offshore and marine engineering solutions company promises to establish nature-related goals, conduct “thorough analyses” of risks and opportunities, and incorporate “specific measures” into its strategy.
Paolo Bevilacqua, FPL’s group head of sustainability, says the property developer and manager identified biodiversity as a “material focus area” since the launch of its ESG Framework in 2018.
See also: TNFD adopters cross 400; nature-related disclosures body releases guidance for eight sectors
FPL implemented a biodiversity management system at its UK business parks, complete with species and habitat assessments, while promoting nature-based activities for occupiers, says Bevilacqua to The Edge Singapore. “Our UK business parks achieved significant recognition for these biodiversity initiatives — Chineham Park was one of only three business parks in the UK to receive the Wildlife Trust Biodiversity Benchmark, which certifies commercial real estate management for ecological and wildlife considerations.”
A focus on nature and biodiversity helps reduce urban heat island impacts and enhance the health and well-being of occupiers, says Bevilacqua. “In some of our overseas properties, stormwater will be harvested and reused in community green spaces — enabling us to manage climate change impacts through stormwater control.”
FPL has conducted a “high-level preliminary nature scan” in FY2024 of its material nature impacts, dependencies, risks and opportunities, adds Bevilacqua. “With these insights, we have gained a better understanding on how we interface with nature and are in the process of developing an internal TNFD-aligned nature framework.”
See also: What’s behind CDL’s ‘first-of-its-kind’ $400 mil sustainability-linked loan?
In addition, some 129 financial institutions are now registered as TNFD adopters, representing US$17.7 trillion in assets under management, including 25% of the world’s systemically important banks (GSIBs).
Among the notable new adopters are financial institutions abrdn, Banco de Bogotá and Manulife Investment Management; alongside professional services firm KPMG, metals and mining company Freeport-McMoRan, airline Qantas, food retailers Morrisons and Sainsbury’s, iron and steel producers Jindal Stainless Limited and JSW Group, solar technology and project developer JA Solar Technology, electronics companies Mitsubishi Electric and Philips, electric utilities EDP, Electrobras and Tokyo Electric Power, and computer hardware company Logitech International.
TNFD and the GBF
TNFD issued the update on Oct 25, at the start of a four-day programme of events at the UN biodiversity summit COP16 in Cali, Colombia.
At the last biodiversity summit in December 2022, countries signed the landmark Global Biodiversity Framework (GBF), which included the headline goal to protect and conserve 30% of the world’s land and marine environments by 2030, also known as the “30x30” pledge.
TNFD’s approach to assessment and disclosure is fully aligned to the goals and targets of the GBF, specifically target 15, which calls on governments to encourage and enable businesses to measure and disclose their nature-related risks, dependencies and impacts; while helping promote sustainable consumption patterns among consumers.
See also: Global banks want to monetise biodiversity
With the GBF’s 2030 deadline, target 15 also urges governments to mandate these steps for “all large as well as transnational companies and financial institutions” along business’ operations, supply and value chains and portfolios.
David Craig, co-chair of the TNFD, says: “The speed of voluntary market adoption over the past year since the release of the TNFD recommendations highlights the growing appreciation among companies and financial institutions across sectors and geographies that nature is a material risk issue for their business and a new source of opportunity and potential competitive advantage.”
Craig notes “significant uptake” across sectors, in particular from asset managers, which address climate and nature risk in their portfolios. “Going forward, the growth in these assessments and public disclosures is helping direct financial flows towards more resilient business models and nature-positive outcomes.”
Draft roadmap
The following day, TNFD released at COP16 a discussion paper outlining a roadmap to upgrade market access to “decision-grade” nature-related data.
According to TNFD, demand from business and finance for nature data is set to grow “exponentially” in the coming years in light of new reporting, target-setting, transition-planning and capital allocation activities.
Hence, a “step-change in funding” is required for upstream nature data providers to meet these new coverage and quality requirements, says TNFD.
The roadmap released on Oct 26 builds on the TNFD’s prior work, including its 2022 nature data landscape assessment and 2023 scoping study on a potential Nature Data Public Facility (NDPF).
The 58-page document outlines three key priorities, which will be the focus of pilot testing in 2025 before a final set of recommendations are put forward in late-2025.
Firstly, TNFD aims to finalise a “composite set of nature data principles”, building on existing scientific, open data and corporate assurance data standards.
Secondly, TNFD aims to begin pilot testing existing nature data and sources with upstream data providers. The group also aims to identify gaps in geographical data and data quality.
Finally, TNFD aims to specify the market needs and use cases for high-quality, assurable nature-related data by testing a beta version NDPF in 2025.
TNFD envisions that the NDPF will provide open access to a baseline amount of nature data relevant to corporates and financial institutions for their corporate reporting, target-setting and transition-planning activities.
TNFD is also evaluating the potential long-term governance, funding and commercial model for such a facility. TNFD has explored a number of institutional structures, such as a public interest entity, collective and social enterprise; it will make a decision at the end of the pilot testing phase, or 4Q2025, with a target to launch in 1Q2026.
The “roadmap for upgrading market access to decision-useful nature-related data” is available online and TNFD welcomes businesses, financial institutions and other stakeholders to provide feedback by Feb 17, 2025.
TNFD was established in June 2021 with the support of the G20 and G7 governments. The Taskforce published its corporate reporting recommendations on nature-related issues in September 2023 after a two-year process led by its 40 members and supported by 20 knowledge partners.
CDL replaced the Singapore Exchange S68 (SGX Group) on the Taskforce earlier this year. CDL is represented on the Taskforce by its chief sustainability officer, Esther An.
The goal of the Taskforce is to support a shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes, aligned with the GBF. The 14 disclosure recommendations guide organisations in reporting and acting on evolving nature-related dependencies, impacts, risks and opportunities. These “drivers of nature change” include climate change, pollution and use of land, freshwater and ocean, among others.
Photo and infographic: TNFD
Read more about COP16:
- Global banks want to monetise biodiversity
- Banks keep ploughing billions into clients threatening rainforests
- Nature ‘piracy’, funding battles will dominate UN biodiversity summit
- ‘Rubber hits the road’ as UN biodiversity summit COP16 kicks off in Colombia
- Global carbon credit market could provide US$100 bil per year by 2050 at ‘moderate costs’: MSCI
