Awareness of the economic value of nature to business is growing. Over half of the world’s GDP is moderately or highly dependant on nature. In Australia, the success of many of our industries depends on nature. These industries include agriculture, fishing, forestry, tourism, and resources.
Our understanding of nature’s contributions to our economy and wellbeing is growing. Yet, nature is still undervalued and often neglected in financial and business decision-making. Awareness of the connection between climate change and nature is also growing. As a result, nature is becoming more prominent in climate conversations. The global community recognises that achieving net-zero emissions requires a transition to nature-positive.
We are supporting a number of initiatives to:
- spotlight the economic benefits of nature
- highlight how nature poses risks and opportunities to businesses and financial institutions
- help businesses and financial institutions understand and manage nature-related risks and act on nature-related opportunities
- align financial flows with nature-positive investments, activities and outcomes.
The Taskforce on Nature-related Financial Disclosures
The Taskforce on Nature-related Financial Disclosures (TNFD) has developed a global nature-related risk management and disclosure framework to help businesses and financial institutions identify and act on nature-related impacts, risks, dependencies, and opportunities.
The TNFD is supported by G7 Finance, Climate and Environment Ministers and the G20 Environment Ministers.
In September 2023, the TNFD released its recommendations after extensive consultation. These recommendations provide guidance for assessing, managing and disclosing nature-related risks, impacts, dependencies and opportunities. A suite of additional guidance is also available to help organisations throughout the process.
Our support for the Taskforce on Nature-related Financial Disclosures
We support the TNFD as a strategic funding partner and are a member of the TNFD Stewardship Council.
In 2022, we hosted a series of workshops in partnership with several industry peak bodies. The workshops highlighted the need for in-depth testing of the TNFD framework in Australia.
In response, we commissioned the TNFD pilot testing project. The project covered five nationally significant case studies. Over twenty Australian organisations from the real economy and financial sector participated. The pilots covered the following five value chains:
- Critical mineral mining for producing clean energy technologies
- Natural gas extraction for industrial manufacturing
- Domestically sourced fresh beef and salmon sold at a supermarket
- Property development and building construction
- Domestic cultivation of cotton for export
We published the TNFD Pilots - Australian case study report to help organisations undertaking TNFD-aligned risk and opportunity assessments. The report details how piloting Australian businesses approached their assessments. We also published a set of guidance documents which provide more information on each of the five value chains.
See below for the TNFD Pilots case study report package.
Value chain deep-dive guidance - Critical mineral mining for producing clean energy technologies (PDF 1.8 MB)
Value chain deep-dive guidance - Critical mineral mining for producing clean energy technologies (DOCX 1 MB)
Value chain deep-dive guidance - Domestically sourced fresh beef and salmon sold at a supermarket (PDF 1.5 MB)
Value chain deep-dive guidance - Domestically sourced fresh beef and salmon sold at a supermarket (DOCX 1MB)
If you have difficulty accessing these files, visit web accessibility for assistance.
TNFD Consultation Group for Australia and New Zealand
The Responsible Investment Association of Australasia (RIAA) is the Convenor for the TNFD Consultation Group in Australia and New Zealand. We support RIAA in this role to help drive Australian engagement with the TNFD.
Nature Finance Council
We provide secretariat support to the Nature Finance Council (Council).
The Minister for Environment and Water established the Council in December 2023.
The Council acts as a platform for public-private collaboration on nature finance. The Council aims to better enable the finance sector to protect and restore nature.
Learn more about the Council.
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