Finance faces new nature-positive disclosure necessities

DAVOS, Switzerland, Could 26 (Reuters) – Monetary corporations already fighting climate-compliance because of unclear measurement metrics will quickly face new disclosure necessities for biodiversity, or nature-related, investments.

“Nature is a monetary danger for enterprise,” Elizabeth Mrema, co-chair of the Taskforce on Nature-related Monetary Disclosures (TNFD), informed the Reuters International Markets Discussion board, including that $10 trillion is accrued yearly from nature.

The TNFD working group is placing collectively metrics to measure biodiversity targets in session with business and monetary establishments. Its post-2020 Biodiversity Framework is anticipated to be adopted later this 12 months.

“It is about accountability. You can not enhance what you can’t measure. What will get measured will get achieved. We want that strong measurement system,” mentioned Daniel Stander, deputy chair of the Resilient Cities Community.

The framework will ask monetary establishments and company our bodies to shift their monetary flows from nature-negative to nature-positive outcomes.

One other metric will ask the non-public sector to repurpose and redirect dangerous subsidies, value over $500 billion a 12 months.

“Biodiversity is getting larger on the agenda,” mentioned David Knibbe, CEO of Dutch insurer NN Group NV (NN.AS), which has 200 billion euros ($214 billion) in belongings underneath administration and is energetic in sustainable finance.

“If we get biodiversity issues, to illustrate the ecosystem is being disturbed, that might result in meals shortages and instability,” Knibbe mentioned, including that NN plans to have interaction with firms in order that the insurer can observe their progress.

“The excellent news is sort of a number of of the biodiversity tasks go hand-in-hand with the local weather tasks,” Knibbe mentioned.

(These interviews have been performed within the Reuters International Markets Discussion board. Be a part of GMF on Refinitiv Messenger: https://refini.television/33uoFoQ)

Reporting by Divya Chowdhury and Jessica DiNapoli in Davos; Modifying by Alexander Smith

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