To Banorte, investing in capital and investing in natural capital are inexorably linked – and for good reason.
Banorte, along with other major financial corporations, is proud to endorse the Taskforce on Nature-related Financial Disclosures (TNFD), an initiative designed to help financial services and other industries more closely assess nature-related risks and opportunities.
Banorte Chairman Carlos Hank González sees the importance of creating a well-rounded investment approach for all businesses, which is what the task force aims to bring by 2023.
TNFD will outline a framework that organizations can use to shift global financial flows away from “nature-negative outcomes and toward nature-positive outcomes.
“Urgent global action is needed to preserve nature as an asset essential for social prosperity and economic growth,” Carlos Hank González said. “Therefore, at Banorte, we enthusiastically support the Taskforce for Nature-Related Financial Disclosures.”
And Banorte has turned its words in actions. Since the initiative was first announced in July 2020, Banorte, through its Sustainability and Responsible Investment Management, has co-chaired an informal working group of 74 members across 24 countries and helped to create attainable recommendations for the scope and workplan of the TNFD.
While the TNDF is a significant first step in creating nature-positive outcomes in the global financial flows, Banorte is committed robust business principles, including:
- Market Usability: Develop frameworks directly useful and valuable to market reporters and users, notably corporations and financial institutions, as well as policy and other actors.
- Science-based: Follow a scientifically anchored approach, incorporate well established and emerging scientific evidence and aim to incorporate other existing science-based initiatives.
- Nature-related Risks: Address nature-related risks that include immediate, material financial risks as well as nature dependencies and impacts and related organizational and societal risks.
- Purpose-driven: Be purpose driven and actively target reducing risks and increasing nature-positive action by using the minimum required level of granularity to ensure achievement of the TNFD goal.
- Integrated & Adaptive: Build effective measurement and reporting frameworks that can be integrated into and enhance existing disclosures and standards. Account for and be adaptive to changes in national and international policy commitments, standards, and market conditions.
- Climate-Nature Nexus: Employ an integrated approach to climate- and nature-related risks, scaling up finance for nature-based solutions.
- Globally Inclusive: Ensure the framework and approach is relevant, just, valuable, accessible, and affordable worldwide, including emerging and developed markets.
Why all of this is important? Earth’s biodiversity is in peril with over-consumption, pollution and deforestation resulting in severe declines in wildlife populations. TNFD-Nature-in Scope cited World Economic Forum estimates that more than half the world’s economic depends on nature. And the TNFD wants to help reorient the flow of investment and capital expenditure to activities that support rather than degrade biodiversity.
For more about the endorsement and the TNFD go to: https://tnfd.info/news/the-taskforce-on-nature-related-financial-disclosures-tnfd-officially-launches/