SINGAPORE: City Developments Limited (CDL), United Overseas Bank (UOB), and Olam Agri have committed to adopting the Taskforce on Nature-related Financial Disclosures’ (TNFD) recommendations.
They are part of a global cohort of 320 organisations from 46 countries planning to integrate these recommendations into their corporate reporting.
The announcement was made at the World Economic Forum in Davos on Jan 16. CDL, UOB, and Olam Agri are among the first to adopt TNFD recommendations and publish aligned disclosures in their annual corporate reports for the fiscal years 2023, 2024, or 2025.
The TNFD, launched in Jun 2021 with G20 and G7 support, published 14 disclosure recommendations in Sept 2023. These recommendations aim to help organisations report and address evolving nature-related dependencies, impacts, risks, and opportunities, including climate change, pollution, land use, freshwater, and ocean concerns.
Of the 320 committed organisations, 98 are publicly listed companies in the MSCI 1500, representing around $4 trillion in market capitalisation.
Financial institutions, comprising 33% of the total, include major asset owners and managers, representing $14 trillion in assets under management. Geographically, 137 organisations are based in Europe, and 134 are in Asia and the Pacific.
Besides CDL, UOB, and Olam Agri, Singapore is represented by Oceonomy and Olam Food Ingredients (OFI) in the committed organisations.
Other notable international entities include Acer Incorporated, Bank of America, BBC, Fidelity International, GSK, Japan Airlines, LVMH, Mitsubishi UFJ Financial Group, Newmont Corporation, Ørsted, PwC, SoftBank, and Standard Chartered Bank.
The TNFD’s recommendations align with the Kunming-Montreal Global Biodiversity Framework, agreed upon by 196 countries in Dec 2022. They are also consistent with the S1 and S2 standards on sustainability reporting, published by the International Sustainability Standards Board in Jun 2023.
David Craig, TNFD co-chair, called the commitment a “milestone moment” for nature finance and corporate reporting. He stated, “We are delighted to see such a strong, diverse and international group of companies and financial institutions step forward only four months after the release of our recommendations and look forward to even more stepping forward over the coming months.”
Elizabeth Maruma Mrema, TNFD co-chair and deputy executive director of the UN Environment Programme, emphasised the market’s commitment to taking action following the release of the TNFD recommendations in Sept 2023.
“Twelve months ago, the world came together to agree to the Global Biodiversity Framework to halt and reverse nature loss, including a specific target on corporate reporting. The release of the TNFD recommendations in September last year provided the tools to do that and today we have seen the market commit to start taking action,” she said.
David Atkin, CEO of the Principles for Responsible Investment, commended the rapid and widespread adoption of TNFD disclosure recommendations as a significant step in addressing nature-related risks and opportunities.
He said, “By committing to disclosing nature-related information, these early adopters are aligning themselves with emerging and ambitious best practice for the long term.”
UOB’s chief sustainability officer, Eric Lim, noted the bank’s expansion from climate to nature and biodiversity. CDL referred to the World Economic Forum’s Global Risk Report 2024, emphasising the role of large corporations in disclosing dependencies and impacts on nature.
Olam Group Limited affirmed its commitment to regenerating the living world, focusing on climate action, healthy ecosystems, soils, water stewardship, and addressing food loss and waste. /TISG