Financial Services
Integrating Natural Capital into Finance
The erosion of natural capital through over-exploitation poses a significant risk to our society, economy and financial stability.
Scenario analysis indicates significant proportions of assets are at risk where lending or investment portfolios depend upon and impact nature and the ecosystem services it provides, such as in the construction, agriculture and food and beverage sectors.
TNFD and Natural Capital Risk
The objective of the Taskforce on Nature-related Financial Disclosures (TNFD) is to encourage and enable businesses and financial institutions to account for the impacts their operations and investments have on nature. Alongside TNFD, portfolio companies and clients are beginning to get ready to report under the related Corporate Sustainability Reporting Directive, (CSRD), European Sustainability Reporting Standard (ESRS), Science Based Targets Network and others. Similar to the Task Force for Climate-Related Financial Disclosure (TCFD), these disclosure regimes aim to include environmental and social factors in financial decisions and to make corporate sustainability reporting common, consistent and standardised.
As the materiality of nature risks and opportunities emerge, alongside reporting requirements, developing a strategy to address nature risks and opportunities is becoming a business imperative for financial institutions. Having been at the forefront of shaping, piloting and implementing the standards that the market relies upon today, such as TNFD’s State of Nature Metrics, and seminal standards that guide action on the ground such as IFC Performance Standard 6, we have a wealth of practical and scientific expertise to support clients to navigate this rapidly evolving space.
Assessing Nature-Related Risk and Opportunity for Banks, Asset Managers and Asset Owners
Our consultants help financial institutions develop their nature strategy starting with a materiality and exposure assessment, through to disclosures and the creation of specific nature actions and agendas.
Our understanding of nature risk and ability to identify and interpret data is founded in our delivery of nature strategies with high-impact and dependency sectors, such as mining, food and beverage, apparel, energy and manufacturing. From banks evolving policies and issuing green bonds, to investors engaging companies and managing responsible investment portfolios, we help clients to identify nature risk and opportunity.
We guide clients to:
Design policies and procedures to ensure allocations deliver against nature-related goals.
Set measurable nature-related targets and milestones with companies.
Align their nature strategy with existing climate, ESG and sustainability objectives.
Get ready to disclose against frameworks including; TNFD, CSRD, ESRS and SFDR.
Make Nature Your Business
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