Norges Bank Investment Management (NBIM), which acts on behalf of the Government Pension Fund Global (GPFG), is to become a member of the Taskforce on Nature-related Financial Disclosures (TNFD).

Officially launched in June 2021, the TNFD is an industry-led initiative aiming to provide a framework for organisations to report and act on nature-related risks. The fund recently published expectations of companies on how they should take biodiversity and sustainable use of ecosystems into account in their business activities, noting that principles and standards in the field were still at an early stage of development.

“As an investor, we recognise that biodiversity loss and deterioration of natural ecosystems can impact our long-term returns,” NBIM chief governance and compliance officer, Carine Smith Ihenacho, said.

“While the financial relevance of nature loss is increasingly clear, the underlying information needed to identify and manage nature-related risks is often not available or decision-useful. Companies need a robust framework to understand and report their dependency and impact on nature, and to handle the associated challenges and opportunities. By supporting the work of the TNFD, we look forward to taking part in developing such a solution.”

A total of 34 executives and senior specialists from global financial institutions, corporates and service providers have so far been appointed as taskforce members to drive the work on the TNFD framework. The finalised risk management and disclosure framework is earmarked for release in late 2023.

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