Nature disclosure recommendations a welcome start to managing serious risks

The Australian Council of Superannuation Investors (ACSI) welcomes the release of the Taskforce on Nature-related Disclosures (TNFD) reporting recommendations, which have had expert input from around the world and will be a strong foundation for Australian listed companies to consider, manage and mitigate the multitude of nature and biodiversity risks they face.

Biodiversity and nature are facing unprecedented rates of destruction around the world.  This not only has a devastating impact on ecosystems, communities and cultures, it also creates material risks for investors and companies which have dependencies and impacts on nature.

“Nature loss needs to be arrested urgently. Ecosystems are enormously complex, and when they are impacted, repercussions are felt at multiple levels and can be cumulative. The challenge is even greater due to a lack of detailed and high-quality information about the way individual companies impact nature,” said Louise Davidson, ACSI CEO.

“The release of the TNFD recommendations will give companies a foundation to measure their impacts and dependencies on nature and their key risks, and we expect companies to improve mitigation and risk management.  The TNFD will also afford investors global comparability, which will be welcome.”

Dealing with complicated biodiversity and nature issues will require capacity building, improved data collection and collaboration across sectors, civil society and governments. 

“The complexity of the issues means there will be a steep learning curve for all of us when it comes to managing and mitigating nature-related risk, but with so much at stake, we have no choice but to get moving and rapidly build capacity and capability,” Ms Davidson said.

“ACSI will be encouraging listed companies in Australia to align with the TNFD to better manage, mitigate and report on their nature risks. There are also important opportunities for new investments that will support Australia to better protect and restore its natural environment and meet commitments under the Global Biodiversity Framework.”

Nature loss is predicted to wipe up to US$20 billion from the Australian economy annually by 2050, according to research by WWF.

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