TNFD expands nature disclosure work in China

The Taskforce on Nature-related Financial Disclosures (TNFD) is expanding its activities in China as it welcomes the country’s first financial institution as a member.

The Bank of China has officially joined the taskforce, which supports widespread corporate disclosures around nature and biodiversity impacts. Like the TNFD’s 40 other members, the Bank of China will provide expert input and design recommendations on the evolving TNFD guidance for corporate nature disclosures.

It will also support the TNFD in relation to Chinese market engagement, data and capacity building – specifically with Chinese companies and financial institutions.

“As China’s most international bank, with a rich history of engagement with organisations and agencies around the world, it is fitting that Bank of China should take the lead as the first Chinese financial institution to join the Taskforce. From our involvement at COP15 in Kunming, our long and pioneering work in sustainable finance, to today’s important announcement, Bank of China is proud to step up and shoulder this responsibility. We look forward to working together with important global partners to seek solutions to the pressing problems of climate change and loss of biodiversity that affect us all,” said Tim Skeet, Member of the Executive Management Committee of Bank of China Limited London Branch.

New TNFD consultations in China

Alongside this new member announcement, the TNFD is also launching new consultation groups in China: the Institute of Finance and Sustainability (IFS) will convene a consultation group in the Chinese Mainland, while the Hong Kong Green Finance Association and Business Environment Council (BEC) will run a similar group in Hong Kong.  

David Craig, Co-Chair of the TNFD, explained: “We are delighted to see growing support from Chinese companies and financial institutions in the work of the TNFD following China’s leadership in negotiating the Kunming-Montreal Global Biodiversity Framework agreement among more than 190 governments in December 2022. 

“Among its goals and targets, that agreement calls on governments to introduce requirements for nature-related reporting, which the TNFD recommendations and guidance now enable. We look forward to learning more from Chinese experience and deepening our engagement in China through the participation of the Bank of China on the Taskforce.”  

Nature disclosures and the Global Biodiversity Framework

TNFD’s disclosure framework is aligned to the goals and targets of the Global Biodiversity Framework (GBF), specifically aiming to operationalise Target 15, which calls on governments to encourage businesses to assess and transparently disclose their nature-related dependencies, impacts and risks. 

As of October 2024, more than 500 organisations and investors representing US$17.7 trillion have committed to publishing nature-related disclosures through TNFD.

TNFD was one of the speakers at CSO Futures’ November webinar on nature strategies: Watch the replay to get practical tips on how to move nature up the agenda within your organisation.