IEMA (Institute of Environmental Management and Assessment) have released new guidance for professionals to help educate and equip them on the roles and reporting related to the TNFD (Taskforce on Nature related Financial Disclosures) supported and partially funded by the UK’s Department for Environment, Food and Rural Affairs (DEFRA).
As Zero Carbon Academy previously discussed, the TNFD recommendations represent a collection of disclosure suggestions and guidelines for organisations to report and take action on changing nature-related dependencies, impacts, risks, and opportunities. The framework for managing and disclosing nature-related risk and opportunity was finalised and released last year during NYC Climate Week, following a consultation period which saw more than 500 feedback submissions considered[i]. The TNFD seeks to promote and encourage robust environmental reporting by businesses, alongside integration of nature-related strategies aligned to science-based targets.
Whilst the TNFD is not yet mandatory, it is one of many recent voluntary frameworks and legislative changes to emerge, as businesses face growing pressure to increase the integration of nature into business decision-making. In the UK for example there were calls earlier this year for the UK Government to outline a roadmap for the implementation of mandatory TNFD disclosures[ii]. At present over 400 organisations, representing almost $22trn in market capitalisation and assets under management, are currently aligned to the TNFD framework, this includes 63 organisations from the UK.
IEMA’s work seeks to assist businesses in understanding the fundamentals of the TNFD framework, suggesting key policy and practical resources, as well as considering how different sustainability professionals will engage with the framework, and connecting the TNFD guidelines with IEMA membership levels and business roles.
IEMA’s policy and engagement lead Lesley Wilson said: “There’s a huge amount of interest in the recommendations provided by the TNFD to better manage nature-related risks. However, the framework can sometimes seem too overwhelming to get started. Ahead of COP16, we’re calling on businesses to get ahead of the curve on nature-related financial disclosures, which will be crucial in alleviating panic and financial pressures further down the line, when this kind of reporting becomes mandatory.” [iii]
IEMA’s new guidance aims to provide an opportunity for businesses to adapt early to nature-related disclosure processes ahead of the UN’s COP16 biodiversity event in Colombia later this month.
Previous research by the World Economic Forum and PwC found that approximately half of the global economy is moderately or highly dependent on nature, equivalent to roughly $44 trillion of economic value generation. In addition, the UN estimates a $4.1trn nature finance gap between 2021 and 2050, showing that closing the gap is critical.
When looking at the UK specifically, The Green Finance Institute estimates that the deterioration of the UK’s natural environment could lead to up to a 12% loss of GDP. This is greater than both the 5% loss in GDP from the 2008 financial crisis, and the estimated loss of 11% due to the Covid-19 pandemic in 2020[iv].
[iii] IEMA - Institute of Environmental Management and Assessment
[iv] IEMA - Institute of Environmental Management and Assessment
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
