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TNFD – making it real in financial services
Results of Asia-Pacific pilot of the TNFD LEAP framework and how organizations can get started on the TNFD.
When the Taskforce on Nature-related Financial Disclosures (TNFD) framework is ready in September 2023, investors and other stakeholders will expect financial services organizations and corporates to be identifying, managing, and reporting on nature-related risks and opportunities.
In 2022, EY financial services teams in Asia-Pacific began a six-month market engagement and pilot testing process of the TNFD beta framework. Heads of ESG and sustainability from 70 financial institutions representing five countries and regions participated in initial awareness sessions, and 12 financial institutions and three corporates joined workshops to provide feedback on the elements of the TNFD LEAP (Locate, Evaluate, Assess, Prepare) framework.
This report is the detailed output from that pilot testing initiative.
The pilot has made it clear that many Asia-Pacific institutions need to rapidly accelerate their biodiversity risk assessment capabilities. While challenging, our pilot shows it is possible to get started now.
Specifically, the project developed 11 clearly defined and tangible use cases relevant to the financial and corporate sectors and the natural world in Asia-Pacific. These use cases provide tangible direction to lenders, insurers, investors, and corporates to help them advance their nature-positive agenda.
Who is this report for?
Financial institutions and corporates
- Learn how peers experienced the LEAP framework and their detailed suggestions for implementation.
- Leverage the use cases from the pilot in your own organization, supported by step-by-step EY guidance on how to get started.
Regulators, authorities, standard-setters and guidance bodies
- Access 13 detailed accelerators nominated by participants in the pilot to support uptake in the financial and corporate sectors, to improve the outcomes for all participants in TNFD adoption.
TNFD
- Consider feedback from participating financial institutions on the LEAP framework and TNFD guidance.
- Benefit from the unique use case approach developed by EY to increase the usability of the TNFD LEAP process in real-world situations.
Summary of report topics and findings
Those wishing to get ahead of the curve have important opportunities to act now to start preparing for TNFD adoption.
Wolfram Hedrich
Partner, Financial Services Consulting, Ernst & Young Advisory Pte. Ltd.