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Will TNFD change the status quo of financial institutions?

5 MINS READ

Alasdair Richardson

ESG Research Analyst, BFSI, TCS

Highlights

  • The TNFD, a disclosure framework for nature-related risks and opportunities, aims to make financial institutions aware of how dependent their businesses are on nature.
  • Financial institutions may be mandated to disclose their nature-related risks. The impact of TNFD will be different across the financial services spectrum, such as for banks, insurers, asset managers, and regulators.
  • There is currently no agreed-upon policy or guideline to disclose nature-based risks and many challenges abound to implement the recommendations of the TNFD. However, the first step financial institutions can take is to measure and collect data on their nature-based impacts and risks.