TNFD adoption grows in Australia

The number of Australian companies committed to publishing nature-related financial disclosures based on the TNFD recommendations has now reached 23 – including some of the country’s largest listed firms.

Early TNFD adopters in Australia include ASX-listed companies such as Qantas, Telstra, Brambles, Bank Australia, EnergyAustralia, GPT Group, Lion and Blackmores. They form part of the more than 400 firms globally that are planning to disclose their nature impacts based on the TNFD framework in the coming two years.

“Australia is home to some of the world’s most diverse ecosystems, but also on the frontline of significant nature loss. We’re committed to reducing our impact on the planet — in the air and on the ground — so that future generations can continue to experience the wonder of travel,” said Qantas Chief Sustainability Officer Fiona Messent. 

“This year we set out our commitment to addressing nature and biodiversity loss by reducing the impact of our operations and supply chain, supporting the broader restoration of nature and advocating for cross-sector transformation. We are developing rigorous nature-related targets and, as an adopter of TNFD, have the framework to transparently measure and report on our progress.”

Australia’s biodiversity is experiencing rapid decline due to human activity and climate change, with the cost of conserving threatened species estimated at A$2 billion per year. For Estelle Parker, Co-CEO of the Responsible Investment Association Australasia (RIAA), “the penny has dropped in Australia’s investor community that the destruction of nature poses a significant risk to their investments”.

TNFD Director: ‘Others must follow their lead’

The Australian firms that recently joined the Taskforce for Nature-related Financial Disclosures will have to publish TNFD-aligned disclosures based on their FY2024-25 or FY2025-26 outcomes.

Executive Director Tony Goldner noted: “I am delighted to see the calibre and diversity of Australian companies and financial institutions now getting started with assessment and reporting of their nature-related issues. But others must follow their lead. As one of the world’s 17 megadiverse countries, Australia’s economy and society is more exposed than most to the acceleration of nature loss. It also has more to gain by leading on these issues and investing in the resilience of nature that underpins the resilience of businesses and capital portfolios across the economy.”

The TNFD says its global membership has now reached more than 440 companies and financial institutions representing over US$6 trillion in market capitalisation among publicly-listed companies and over US$16 trillion in assets under management (AUM) among asset owners and asset managers.