Biodiversity, climate change key to financial transparency

Finance faces new nature-positive disclosure requirements DAVOS, Switzerland - Financial firms struggling with climate-compliance due to unclear measurement metrics will soon face new disclosure requirements for biodiversity or nature-related investments.

Elizabeth Mrema, co-chair of the Taskforce on Nature-related Financial Disclosures TNFD told the Reuters Global Markets Forum that $10 trillion is accrued every year from nature.

The TNFD working group is putting together metrics to measure biodiversity targets in consultation with industry and financial institutions. Its post 2020 Biodiversity Framework is expected to be adopted later this year.

What gets measured gets done. Daniel Stander, deputy chair of the Resilient Cities Network, said we need a robust measurement system.

Financial institutions and corporate bodies will be asked to shift their financial flows from nature-negative to nature-positive outcomes.

Another metric will ask the private sector to repurpose and redirect harmful subsidies, worth over $500 billion a year.

Biodiversity is getting higher on the agenda, according to David Knibbe, CEO of Dutch insurer NN Group NV, which has 200 billion euros $214 billion in assets under management and is active in sustainable finance.

If the ecosystem is disturbed, that could lead to food shortages and instability, Knibbe said, adding that NN plans to engage with companies so that the insurer can track progress.

Several of the biodiversity projects are hand-in-hand with the climate projects, and that is good news, said Knibbe.