A growing crop of companies, including about a quarter of world’s big banks, are adopting the recommendations from the Taskforce on Nature-related Financial Disclosures (TNFD).
The number of organizations that will adopt the proposals has increased by 30% since the start of 2024, the TNFD said.
“These organizations have signalled their intention to begin adopting the TNFD recommendations and publishing TNFD-aligned disclosures as part of their annual corporate reporting for fiscal 2024 or fiscal 2025,” it said.
The addition of 96 firms takes the total number of companies committed to the TNFD recommendations to 416, including 114 financial institutions representing US$15.9 trillion in assets under management and 25% of the world’s systemically important banks.
The public companies that have committed to adopt the recommendations represent more than US$6 trillion in market cap, the group said.
“The ongoing uptake of the TNFD’s recommendations is further evidence that the mindset in business and finance is quickly shifting to a recognition that accelerating nature loss is imposing costs and risks on society as a whole, as well as to individual business models and capital portfolios,” said David Craig, co-chair of the TNFD, in a release.
The Taskforce also announced the launch of its first set of sector-specific guidance for applying the recommendations, which covers eight industries — including energy, mining, utilities and forestry — along with added guidance for financial institutions.
The guidance for financial firms focuses on the recommended disclosures and disclosure metrics for banks, asset managers, investors and insurers.