Three Aussie firms among first signatories of global disclosure regime
Three financial services organisations are among the first 12 Australian organisations to state they intend to start making disclosures aligned with the global Taskforce on Nature-related Financial Disclosure (TNFD).
The three Australian firms are boutique asset manager Ethical Partners Funds Management, alternative investment manager Metrics Credit Partners, and nature-based investment manager New Forests Asset Management.
Ethical Partners and New Forests will begin reporting from the 2024 financial year, while Metrics will begin in 2025. The first two of the three firms are also recognised as Responsible Investment Leaders by the Responsible Investment Association Australasia (RIAA).
The TNFD has developed a set of disclosure recommendations and guidance for how organisations should report and act on evolving nature-related dependencies, impacts, risks and opportunities.
Estelle Parker, co-chief executive of RIAA, said: “As a market-led, science-based and government-backed initiative, TNFD has now provided the tools to act on evolving nature-related issues. Companies can now report and act and support the shift in global financial flows away from nature-negative outcomes and towards nature-positive outcomes.”
Jo Saleeba, global head of sustainability and impact at New Forests, said: "The TNFD recommendations provide the crucial foundations to help companies and investors address and report on nature-related risks, and to drive global capital flows towards investment in nature-positive outcomes.”
"We recently completed a pilot of the TNFD alongside one of our forestry assets, Forico, and are well positioned to be one of the early adopters of this framework.
"If the global economy is to halt and reverse nature loss by 2030, it’s essential that companies start to understand and disclose nature-related risks."
Other financial services organisations headquartered outside of Australia that have signed up include Bank of America, Federated Hermes, Fidelity International, Mirova, Quinbrook, Robeco and Standard Chartered.
Overall, there are 320 organisations worldwide that have committed to the agreement, including some of the world’s largest firms such as pharmaceutical firm AstraZeneca, luxury retailer LVMH and manufacturer Yamaha.
Last week, Treasurer Jim Chalmers announced the final policy design of corporate climate-related financial disclosure requirements that will apply in Australia. This will introduce mandatory requirements for large businesses and financial institutions to disclose their climate-related risks and opportunities.
He said: “Our changes will establish Australia’s climate risk disclosure framework, giving investors and companies the transparency, clarity and certainty they need to invest in new opportunities as part of the net zero transformation.
“This is an important step for improving transparency and will help investors and companies make more informed investment decisions and lay the foundation for a stronger, more robust financial system.”
AUTHOR
Laura Dew
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