LGIM, Generation, MUFG to report on nature

The Taskforce on Nature-related Financial Disclosures (TNFD) has seen 96 publicly listed entities sign up, representing over US$6 trillion in market capitalisation.

This is a 30% increase in adopters of nature-related corporate reporting recommendations since January, bringing the total to 416.

This includes 114 financial institutions representing US$15.9 trillion in assets under management, including 25% of the world's systemically important banks (GSIBs).

The financial institutions include LGIM, Generation Investment Management and MUFG Asset Management.

David Blood, senior partner, Generation Investment Management, said: "To achieve a world which protects nature and preserves a habitable climate we must drive the growth of sustainable investing and expand what capital values.

"We believe the TNFD recommendations and nature-related disclosures will help create the enabling conditions for investors and capital to achieve sustainability outcomes and impact."

The new companies include Volvo, Ricoh, China Mengniu Dairy Ltd and Acciona.

This means the entities commit to publish TNFD-aligned disclosures as part of their annual corporate reporting for FY2024 or FY2025 outcomes.

2023 TNFD disclosure reports have already been released for some entities.

This comes as the TNFD releases new sector guidance, including recommended sector-specific disclosure metrics, to support reporting by companies and financial institutions.

The guidance covers aquaculture, biotech and pharmaceutical, chemicals, energy and utilities, food and agriculture, forestry and paper, metals and mining, and oil and gas.

David Craig, co-chair of the TNFD said the ongoing uptake "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.

"Voluntary uptake now of the TNFD recommendations is the best way to meet these shifting expectations and the best way to meet new regulatory requirements such as CSRD.

"We are delighted that organisations globally are also using TNFD to prepare for the forthcoming expansion of the global sustainability reporting baseline now that the ISSB has commenced its important work on nature building on the recommendations of the taskforce".