More than 300 organizations from 46 countries have committed to disclosures based on recommendations by the Taskforce for Nature-related Financial Disclosures.
The TNFD is a reporting framework created on the principle that nature is a core risk management issue to be treated the same as climate change. The TNFD task force also provides a set of metrics that are intended to assist firms with nature-related assessment and disclosure.
The TNFD also looks to align itself with the Kunming-Montreal Global Biodiversity Framework, a commitment to "halt and reverse" nature loss by 2030.
Institutional investors confirmed to have signed up to TNFD reporting include Swedish pension funds AP2, Gothenburg, and AP7, Stockholm; U.K.-based Brunel Pension Partnership, Bristol; London CIV; and Norges Bank Investment Management, which oversees sovereign wealth fund, Government Pension Fund Global, Oslo.
"This is a milestone moment for nature finance and for corporate reporting," said David Craig, co-chair of the TNFD and founder of market data provider Refinitiv, in a news release. "It is a clear signal that investors, lenders, insurers and companies are recognizing that their business models and portfolios are highly dependent on both nature and climate and need to be treated as both strategic risks and investment opportunities."
These first adopters will be expected to publish TNFD-aligned disclosures as part of their annual corporate reporting by financial year 2025.
As well as the TNFD, certain European institutional investors also showed a commitment to the environmental element of ESG by backing a climate resolution to be filed at the annual general meeting of oil and gas giant Shell.
The resolution calls for Paris-aligned emissions reductions targets, and was drafted by climate NGO Follow This. Unlike last year's resolution, which set a 2030 deadline, this motion calls for emissions reductions with "medium-term targets."
There are 27 institutional investors with collective assets of €4 trillion ($4.38 trillion) acting as co-filers, including Amundi, Candriam, Scottish Widows, and National Employment Savings Trust, London.
"We urge Shell to set a credible scope 3 absolute emissions target. This would demonstrate leadership, show Shell is serious about transitioning its business, and play a role in generating real-world change," said Diandra Soobiah, head of responsible investment at NEST.
However, while with institutional investor backing, similar Follow This resolutions have failed to gain major traction at the previous AGMs of oil and gas majors, with the last two filings at Shell receiving around 20% overall support.
