Jessica DiNapoli, Divya Chhowdhury

DAVOS (Switzerland) – New disclosure rules will be implemented for nature-related investments and biodiversity by financial firms that are already having difficulties with climate compliance due to unclear metrics.

Elizabeth Mrema (co-chair, Taskforce on Nature Related Financial Disclosures, (TNFD) told the Reuters Global Marketplaces Forum that nature is a risk to business. She also said that each year $10 trillion in natural resources is generated.

In consultation with financial institutions and industry, the TNFD Working Group is preparing metrics for measuring biodiversity targets. This year, the framework that will govern post-2020 biodiversity should be ready for adoption.

It is about accountability. It is impossible to improve something you can’t measure. Measurement is the key to success. That robust measurement system is essential,” Daniel Stander, vice-chair of Resilient Cities Network said.

Financial institutions and corporate entities will be asked to change their financial flows to achieve nature-positive results by the framework.

A second metric asks the private sector for help in redirecting harmful subsidies that are worth more than $500 billion per year.

David Knibbe CEO, Dutch insurance company Dutch Insurer said that “biodiversity” is becoming a higher priority. NN Group NV is active in sustainable financing and has assets of 200 billion euros (214 billion).

Knibbe explained that if we have biodiversity problems it can cause disruption to the ecosystem, and that this could result in food shortages or instability. NN will also engage companies to monitor their progress.

Knibbe stated that “the good news is quite some of the biodiversity projects work hand-in-hands with climate projects.”

These interviews were done in the Reuters Global Markets Forum. Join GMF on Refinitiv Messenger: https://refini.tv/33uoFoQ)