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How TNFD is shaping nature-positive outcomes

Nature underpins the global economy. But the natural world is being lost at an unprecedented rate, with species extinction at 100-1,000 times historical norms.

Despite this, most corporations, investors and lenders are not properly including nature in their decisions. 

The Taskforce on Nature-related Financial Disclosures (TNFD) aims to catalyse a shift to an economy that supports nature. This means giving reporting companies and financial institutions the tools and information to put nature into the centre of decision-making. The TNFD’s recommendations are designed to help organisations understand the importance of nature and biodiversity for business and finance, and to assist them in integrating nature-related issues into their governance, strategic planning, risk management and disclosures.

ICMM is the official piloting partner for the mining and metals sector of the TFND and has published draft sector-specific guidance, which you can find here. This supports companies in managing the details and technical nuances that are unique to our sector. 

Mining companies have been reporting on their impacts on biodiversity for decades, but this guidance goes much further to capture a holistic view of nature and how it impacts the business. The sector has significant opportunities to take nature positive action and by understanding our key risks and opportunities, we can take the right actions in the right places.

The benefits of biodiversity

Biodiversity - the variety of life and ecosystems in the natural world - is essential because, at a fundamental level, it makes the earth habitable. Examples of this are multiple:

  • The ratio of gases in the earth’s atmosphere is reliant on photosynthesis and carbon sequestration.

  • Soil fertility depends on nutrient cycling from a huge array of animals, organisms and environmental factors.

  • Water flows are regulated and cleaned through natural processes.

  • Food in the form of crops relies on photosynthesis and natural pollinators to grow.

The natural world also has a less utilitarian benefit for humans. Recreation and education benefit from a connection with the natural world. And studies have shown that people who are better connected with nature are usually happier and more fulfilled.

Putting nature at the heart of decision making 

It is important to understand why contributing towards a nature positive future is good for business.

There is no doubt that responsible management of biodiversity is becoming increasingly important in the mining sector, particularly when it comes to:

  • Access to land, both at the initial stages of projects and in extending the life of existing projects.

  • Reputation, which is an intangible benefit but extremely important when it comes to the perceptions that communities, governments and other organisations have about proposed operations.

  • Access to capital, as many investment banks have their own biodiversity commitments to meet.

Several potential business benefits can flow from these, including increased investor confidence, improved community relations and employee motivation, as well as reduced risks and liabilities.

ICMM members are committed to contributing to a nature positive future and the launch of TNFD’s global framework is an important step on the journey towards halting and reversing nature loss.