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 The potency of its potential risks and returns puts nature firmly in the frame of directors’ fiduciary duties. But what is often harder for directors to grasp is where to start.
It’s not straightforward to measure nature dependencies and risks, as flagged by the Australian Climate Leaders Coalition in its recently released guide to integrating nature into business strategy. But it’s “entirely achievable” says the group of about 50 Australian company CEOs, originally formed to push decarbonisation. Adding extra impetus to do the “heavy lifting” now the group predicts global nature-related disclosures will become mandatory within two to five years. While there is an undoubtedly steep nature-risk learning curve for all players across the global business ecosystem, among the trailblazers is a cohort of 320 organisations — 12 from Australia — which recently became the first to commit to report against the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations within the next two reporting years. Finalised last September, the TNFD recommendations will likely underpin forthcoming international nature disclosure standards, just as the now disbanded Taskforce on Climate-related Financial Disclosures (TCFD) culminated in the International Sustainability Standards Board climate disclosure standards (known as IFRS S2) and, in turn, Australia’s. ore than half the world’s GDP is estimated to be dependent on the natural world — yet natural ecosystems are rapidly deteriorating, representing an annual loss of at least US$479b, according to the UN Environment Programme Finance Initiative. At the same time, restoring nature can make a powerful contribution to mitigating climate change. The potency of its potential risks and returns puts nature firmly in the frame of directors’ fiduciary duties. But what is often harder for directors to grasp is where to start. To read the full article, pop into Company Director magazine here. Comments are closed.
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