Shaping a Nature-positive Future for Business
"During the space of a single human lifetime, my lifetime, we have changed the planet so much that the benign, stable conditions which underpinned both the growth of our civilisations and the trade and financial systems have ended."
Sir David Attenborough ^
^ David Attenborough made this statement during his speech at the United Nations Climate Change Conference UK 2020, where in his address, he highlighted the significant environmental changes that have occurred within his lifetime and the impact these changes have had on the planet and human civilisation.
Nature-positive
Nature-positive is an approach to environmental sustainability that goes beyond minimising harm to actively restoring and regenerating the natural world. It recognises that nature is not just a passive backdrop to human activity but an essential, dynamic system that underpins all aspects of life, including our economy.
Businesses, governments, and communities work to enhance biodiversity, protect ecosystems, and replenish natural resources in a nature-positive framework. This involves restoring degraded lands, increasing biodiversity, and ensuring that human activities contribute positively to the planet's health.
The ultimate goal of nature-positive initiatives is to create a net gain for nature, where the benefits to ecosystems and biodiversity outweigh any negative impacts. This approach is increasingly seen as crucial for achieving long-term environmental resilience, economic stability, and social well-being, as it ensures that the natural systems we rely on are sustained and strengthened for future generations.
Businesses, governments, and communities work to enhance biodiversity, protect ecosystems, and replenish natural resources in a nature-positive framework. This involves restoring degraded lands, increasing biodiversity, and ensuring that human activities contribute positively to the planet's health.
The ultimate goal of nature-positive initiatives is to create a net gain for nature, where the benefits to ecosystems and biodiversity outweigh any negative impacts. This approach is increasingly seen as crucial for achieving long-term environmental resilience, economic stability, and social well-being, as it ensures that the natural systems we rely on are sustained and strengthened for future generations.
Taskforce for Nature-based Financial Disclosures (TNFD)
The Taskforce on Nature-related Financial Disclosures (TNFD) is a global initiative to guide businesses and financial institutions in understanding, managing, and disclosing their impacts on nature. Launched in 2020, the TNFD was created in response to the growing recognition that nature and biodiversity are fundamental to the global economy yet need to be more valued and often overlooked in traditional financial decision-making.
The TNFD provides a standardised framework for companies to assess and report on nature-related risks and opportunities, similar to how the Taskforce on Climate-related Financial Disclosures (TCFD) has helped businesses address climate risks. The framework is designed to help organisations integrate nature into their strategic planning, risk management, and financial reporting, ensuring that natural capital is accounted for alongside other critical assets.
By promoting transparency and accountability, the TNFD aims to shift financial flows towards activities that protect and restore nature, ultimately supporting the transition to a more sustainable and resilient global economy. The TNFD is supported by a broad coalition of governments, businesses, financial institutions, and environmental organisations, reflecting a collective commitment to embedding nature at the heart of economic and financial decision-making.
The TNFD provides a standardised framework for companies to assess and report on nature-related risks and opportunities, similar to how the Taskforce on Climate-related Financial Disclosures (TCFD) has helped businesses address climate risks. The framework is designed to help organisations integrate nature into their strategic planning, risk management, and financial reporting, ensuring that natural capital is accounted for alongside other critical assets.
By promoting transparency and accountability, the TNFD aims to shift financial flows towards activities that protect and restore nature, ultimately supporting the transition to a more sustainable and resilient global economy. The TNFD is supported by a broad coalition of governments, businesses, financial institutions, and environmental organisations, reflecting a collective commitment to embedding nature at the heart of economic and financial decision-making.
Natural Capital
Nature is our most valuable asset class, yet we have historically undervalued it, and natural capital refers to the world’s stocks of natural resources - like forests, rivers, and biodiversity - that provide essential ecosystem services supporting life and economic activity.
The TNFD provides a framework to help businesses integrate nature into their strategies, ensuring resilience and long-term viability. But more than that, it offers a pathway to transform how we operate, innovate, and grow in harmony with the natural world.
Risks and Opportunities
However, navigating this evolving landscape can be particularly daunting for many small and medium enterprises (SMEs). The demands from the flow-on effects of mandatory climate reporting in Australia and the potential future requirements for nature-based reporting require a multi-disciplinary approach that goes beyond traditional business practices in identifying nature-related risks and oportunities.
TNFD 2023_Links between nature-related risks and opportunities business performance and financial effects for an organisation
Business Models Redesigned
Our approach must be rooted in the belief that businesses must evolve to mitigate risks and seize new opportunities. By adopting a multidisciplinary strategies, SMEs can navigate these complex challenges, ensuring they are not only compliant but also positioned for future success.
It means rethinking business models, reconfiguring investment portfolios, and harnessing the regenerative power of nature itself.
We understand that the road ahead is uncertain, and the implications of these new regulations are still unfolding. But by anticipating these changes and preparing your business now, you can position yourself as a leader in the transition to a more sustainable and nature-positive future, confidently.
TNFD 2023_Connections between nature-related dependencies and impacts and risks and opportunities_Impact and dependency pathways
Action and Urgency
The urgency of action must be balanced. We are at a critical juncture where our decisions today will determine our ability to thrive tomorrow, and the partnerships will we need to form are necessary if our businesses are to lead in this new era of sustainability. Together, we can build a future where business, finance, and nature prosper in harmony - ensuring that your company is a participant and a leader in the transition to a nature-positive economy.