This article is also available in Italian / Questo articolo è disponibile anche in italiano

From Cali, Colombia - Reporting and knowledge form the foundations of implementing the Global Biodiversity Framework, and it is no coincidence that metrics and standards were widely discussed both within and beyond the Blue Zone at COP16. These tools are essential for understanding the progress of governments and the private sector, evaluating regeneration and conservation projects, and determining how to allocate economic resources most efficiently. 

To this end, two reporting systems − the Task Force on Nature-related Financial Disclosures (TNFD) and the Global Reporting Initiative (GRI) − are highlighted as key frameworks for integrating biodiversity and sustainability reporting within global finance and in business and industry practices, particularly within agribusiness. With transparent, standardised communication on biodiversity now essential, frameworks such as the TNFD have become pivotal. This explains the significant attention surrounding the work of this Task Force, which is supported by the UN Environment Programme itself.

The Task Force on Nature-related Financial Disclosures (TNFD) at COP16

In Cali, there has been considerable discussion around the TNFD. Embraced by the corporate sector but disliked by some civil society and indigenous groups, the Task Force is carving out its own place in the landscape of nature-related corporate disclosures. It is not a UN body, but rather a group of 40 executives from financial institutions, corporations, and market service providers worldwide.

The Task Force is led and driven by two co-chairs. David Craig, a private investor in natural capital technology firms, is a Board Advisor and chairs the Triple Private Equity Investment Committee, a former McKinsey and former CEO of data giant Refinitiv. Her Excellency Razan Al Mubarak, President of the International Union for Conservation of Nature (IUCN) and a key figure in UAE environmental policy, co-chairs alongside him.

TNFD runs rampant at COP16

In the first week of COP16, the Task Force on Nature-related Financial Disclosures was highly active. On 25 October, it announced that as many as 502 organisations had committed to using TNFD disclosure, representing assets under management totalling 17,700 billion. This reflects a 57% rise in commitments since January 2024, underscoring the growing recognition of nature as a critical factor in business risk and opportunity management, as well as the increasing influence of TNFD’s work. Currently, only two Italian companies, Enel and Poste Italiane Spa, are participating. By contrast, 23 companies in France − including the LVMH group − have committed, while Japan has as many as 133 companies spanning various sectors.

On 26 October, the Task Force on Nature-related Financial Disclosures presented a draft roadmap aimed at improving market access to high-quality nature-related data. Three priority areas outlined in the roadmap will undergo pilot testing in 2025, with final recommendations to be issued by year-end. The 28 October confirmed direct funding from the Japanese government, which has been a strong supporter of the TNFD, with two major Japanese financial institutions, MS&AD and Norinchukin Bank, represented on its board. Now, the TNFD awaits its final endorsement: to be included in the COP16 closing negotiation text, as already transpired from some drafts analysed by Renewable Matter.

“This roadmap reflects our ongoing commitment to develop a comprehensive and collaborative approach to addressing the gaps in nature-related data availability, consistency, and quality,” remarked David Craig, TNFD Co-chair, on the sidelines of a press conference. “These efforts are critical to empowering business and finance to take concrete action as soon as possible.”

"The Taskforce on Nature-related Financial Disclosures is playing a crucial role in bringing not only the corporate sector but also financial institutions closer to the topic of reporting on impacts and reliance on nature” explains Simone Mazzola, COO of 3Bee. “Moreover, the TNFD is helping to raise international awareness of this issue. However, introducing an additional methodology separate from existing frameworks may heighten the perceived complexity of this topic. It is therefore essential that efforts to enhance reporting are coordinated, and that the various methodologies can complement or align with each other, thereby facilitating implementation by companies and financial institutions."

The critical aspects of the Taskforce on Nature-related Financial Disclosures

However, the TNFD has not entirely convinced experts in nature reporting. Criticism has been raised by a coalition of NGOs, including Rainforest Action Network, the Third World Network, the Forest & Finance coalition, the Indigenous Environmental Network, WECAN, Bank Track, the Global Forest Coalition, and Friends of the Earth International. “In recent days, we have lodged a formal complaint with UNEP for the inclusion of a private initiative within the UN Environment Programme,” explains Shona Hawkes, Senior Advisor for Finance at Rainforest Action Network. “Now we would like this not to be mentioned in the COP16 final document. The TNFD only recommends that companies account for the impact of biodiversity loss on their profits. Nothing is asked about the impact of their operations on nature, as is already done with the double materiality of CSRD.”

The complaint alleges that UNEP has violated its own policies regarding the protection of environmental defenders, gender, and access to information, as UNEP is a co-founder and promoter of the TNFD. However, the TNFD is a decision-making body with a task force consisting entirely of companies, many of whom have significant connections to environmental and human rights violations. It does not include government officials, scientists, victims of corporate harm, environmental defenders, indigenous peoples, or even small businesses. At present, it remains uncertain whether the TNFD will be mentioned in the final negotiation document, as many issues are often excluded from the final texts. Perhaps, in this instance, we could consider omitting this task force altogether.

To find out more, keep following us: after covering the Kunming-Montreal agreement in 2022, from 25 October to 2 November Renewable Matter will be in Cali for COP16, as the only accredited Italian publication. The journalistic coverage is realised with the support of 3Bee, united in promoting the progress of national strategies for the protection of biodiversity. Visit us in the press room!

Image: H.E. Razan Al Mubarak © TNFD