David Craig, the former CEO of Refinitiv, has taken on a significant role as co-chairman of a newly established Taskforce on Nature-related Financial Disclosures (TNFD). This initiative aims to assist businesses in evaluating emerging risks and opportunities related to nature.
Craig departed from Refinitiv at the end of last month after nearly a decade of leadership within the global financial data firm, following its acquisition by the London Stock Exchange.
The TNFD initiative, which enjoys the backing of prominent financial institutions, corporations, and governments, seeks to develop consistent voluntary disclosures. This framework will enable businesses, investors, lenders, and insurance underwriters to manage nature-related risks, including potential legal liabilities and the systemic degradation of soil fertility.
In its inaugural year, the TNFD plans to build on the foundations laid by the Task Force on Climate-related Financial Disclosures (TCFD), which has been pivotal in integrating climate-related financial risks into mainstream discussions. The TNFD’s framework for nature-related risks will complement the TCFD’s existing climate framework, providing companies and financial institutions with a comprehensive understanding of their environmental challenges.
The framework will undergo testing and refinement throughout 2022, with a full launch anticipated in 2023.
Craig will lead the 30-member Taskforce alongside co-chair Elizabeth Maruma Mrema, who serves as the executive secretary of the United Nations Convention on Biological Diversity (CBD).
Craig emphasizes the urgency of the initiative, stating, “Without immediate action, the ongoing decline in biodiversity presents unprecedented risks to businesses, both today and in the future. Enhanced data concerning nature-related issues will empower financial institutions and companies to make informed decisions. Financial disclosures are critical to forging a market-based approach to address nature loss. A well-functioning market, equipped with the necessary information, will accurately price risks and direct investments toward more sustainable ventures.”