Nature-related risk disclosure for Canadian companies may be years away

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The Taskforce on Nature-related Financial Disclosures released its final recommendations for a standardized international framework that aims to present a full picture of what it calls ‘natural capital’

A new reporting system for companies and financial institutions to tally their impact on land, water, biodiversity and other parts of the natural world will allow investors and regulators to finally get a full accounting of risks and benefits stemming from industrial operations, its developers said on Monday.

The TNFD represents a major expansion of reporting for companies and financial institutions, which are already scrambling to catalogue climate and other non-financial items. Such data are increasingly seen as key to presenting a full spectrum of risks as climate-related disasters, including shoreline loss, floods, deforestation and wildfires, show an ever larger and more damaging set of variables to corporate health.

Mr. Goldner cited growing interest among the world’s largest financial players in getting access to these data in standardized form. Norway’s sovereign wealth fund, asset manager BlackRock Inc. and Aviva, the insurer, all have nature-related factors as part of their own stewardship guidelines. TC Energy Corp., Canadian Imperial Bank of Commerce, Bank of Montreal, Teck Resources Ltd., Agnico Eagle Mines Ltd., and the Canada Pension Plan Investment Board are among 27 Canadian organizations that have piloted the system.

 

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