ABA joins the TNFD Forum

Banks in Australia recognise the critical role that the financial sector plays in protecting and rebuilding natural capital and most banks are at an early stage of understanding nature-related risks and opportunities and how these can be incorporated into risk management, strategy, and future disclosures.  

To ensure banks in Australia can continue to develop understanding of nature-related risks and contribute to the evolution of disclosure frameworks, the ABA has joined the Taskforce for Nature-Related Financial Disclosures (TNFD) Forum.

The TNFD Forum is a global multi-disciplinary consultative group of institutions with over 550 members, including multiple ABA member banks. Membership in the forum provides access to regular information updates, opportunities to support the research and technical work of the Taskforce and will ensure the industry remains well-informed on nature-related risk management and disclosure trends and developments. 

The goal of the TNDF is to develop and deliver a risk management and disclosure framework for organisations to report and act on evolving nature-related risks, which aims to support a shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes.

Improving the availability of information to help financial institutions understand how nature impacts current financial performance or the long-term risks that may arise from how the organisation positively or negatively impacts nature, will be critical to ensure nature-related risks and opportunities can be incorporated into their strategic planning, risk management and asset allocation decisions.  For banks, this not only includes their own operations but importantly, that of their customers through financing activities.

The TNFD will not create a new disclosure standard, rather, TNFD aims to establish and promote the adoption of an integrated risk management and disclosure framework that aggregates the best standards, data and tools to inform better corporate and investment decision making.

Find out more about the TNFD

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