Explainer | What is the Taskforce on Nature-related Financial Disclosures? Why does its draft framework matter to businesses in Hong Kong?

More than half of the world’s GDP, or US$44 trillion, is ‘moderately or highly dependent’ on nature, and thus exposed to risk as a result of nature loss, according to WEF

The final draft of the TNFD framework was released on March 28. It will be adopted in September after the end of a two-month consultation on June 1

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Businesses are dependent on nature and without functioning ecosystems companies would face extreme risk. Photo: Shutterstock

Published: 1:30pm, 7 Apr 2023

The final draft of the Taskforce on Nature-related Financial Disclosures (TNFD) framework is a “much-needed” tool to help companies address the challenge of global biodiversity loss and the impact of ecological risks on their business, according to Hong Kong firms.

Over half the world’s gross domestic product, or US$44 trillion of economic value, is “moderately or highly dependent” on nature, and thus exposed to risk as a result of nature loss, according to the World Economic Forum.

“The reality is that we are 100 per cent dependent on nature at some level,” Tony Goldner, executive director of TNFD, said in an interview.

“Without functioning ecosystems, our prosperity would collapse, and business would face extreme risk. We need to think about nature as a source of mainstream risk to the future of businesses. That’s why TNFD is so important.”

Attendees visit the ‘Biosphere Experience’ at the Interactive Pavilion in the Green Zone during the United Nations Climate Change Conference in Sharm El-Sheikh, Egypt, on November 9, 2022. Photo: dpa

What is the TNFD framework, and why does it matter to businesses?

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