The Taskforce on Nature-related Financial Disclosures (TNFD) has signalled that it will strengthen its presence and engagement in the Chinese market by welcoming the Bank of China as a new member.
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Joining the market-led global initiative, the Beijing-headquartered multinational banking corporation will “provide expert input and design recommendations on the evolving TNFD guidance for market participants”, said a media release from TNFD. It will also support TNFD in expanding its ties with Chinese companies and financial institutions.
TNFD co-chair David Craig observed that there is growing support from Chinese firms in nature-related disclosures and the taskforce’s work. This follows China’s show of leadership in negotiating the Kunming-Montreal Global Biodiversity Framework (GBF) agreement among more than 190 governments in December 2022.
“We look forward to learning more from the Chinese experience and deepening our engagement in China,” he said.
Tim Skeet, member of the executive management committee of the Bank of China’s London branch, said that solving the pressing problems of climate change and biodiversity loss requires multinational cooperation and the development of global standards. He highlighted how the bank played a leading role at the United Nations COP15 biodiversity summit in Kunming, where the GBF was adopted.
Prior to the Bank of China joining, the taskforce had 40 members, including representatives in Asia such as Hong Kong-based Swire Properties’ deputy head of sustainable development Patrick Ho and Singapore real estate company City Developments Limited’s chief sustainability officer Esther An.
Japan’s Norinchukin Bank and MS&AD Insurance Group also sit on the taskforce; TNFD or Bank of China have not yet named who will act for the bank – TNFD’s first Chinese financial institution representative – on the taskforce.
In the same media release, TNFD also announced the launch of two new TNFD consultation groups in China. Beijing-based think tank Institute of Finance and Sustainability (IFS) will convene a consultation group on mainland China, while the Hong Kong Green Finance Association (HKGFA) and non-profit Business Environment Council (BEC) will do so in Hong Kong.
These two groups join a global network across TNFD’s key markets, including Australia, India, Japan and Singapore in Asia Pacific. They will look at building local capacity for nature-related assessment and reporting and contributing to the development of future guidance produced by the taskforce, said TNFD.
Since the launch of TNFD’s guidance in September 2023, over 500 public listed firms from 54 countries and with over US$17 trillion in assets under management have pledged to start reporting against its framework by FY2025.
Although Asia has been slower to see companies align with this new framework, observers see China as a bright spot with an increasing number of Chinese firms embracing nature-related disclosures, a trend backed by government-led initiatives.
Environmental advocate Gareth Thomas, who is the head of research innovation at London’s Natural History Museum and sits on the International Advisory Panel on Biodiversity Credits (IAPBS), said China is one of the world’s most biodiverse countries. “Its leadership in nature-positive finance and other initiatives can create massive ripple effects worldwide.”