TNFD gives risk assessment guidance

Executive director Tony Goldner writes for ESG Clarity on the complex topic of nature

This month, world-leading scientists discovered we have surpassed the planetary boundary for fresh water, meaning we are putting more pressure on the water cycle than the planet can sustain. At the same time, it emerged that a third of listed financial institutions are not assessing the risks that come from their exposure to water-related dependencies.

This contrast is replicated when it comes to other realms of nature, including land and ocean. Scientists tell us we urgently need to halt and reverse nature loss, while financial institutions – and the companies they invest in – are not sufficiently assessing their exposure to nature-related issues, let alone managing or reporting on it.

The same gap between science and market practice used to exist in the climate space. Now, climate change is widely recognised as a systemic risk issue, and it demands attention across all sectors. Helpfully, a new vernacular has emerged for talking about climate change and climate action. Much remains to be done for financial institutions and corporates globally to align with the net-zero transition in practice, but net-zero ambitions have quickly become the expected norm.

Read the full comment in ESG Clarity’s May 2022 digital magazine.


Natasha Turner

Natasha is global editor at ESG Clarity, part of the Bonhill Group, and has been a financial journalist for seven years. She has been shortlisted for Story of the Year and Investment Journalist of the...