Kenyan banks have pledged to lead efforts to enhance nature-positive finance following the launch of the Taskforce on Nature-related Financial Disclosures (TNFD) final proposals.
Banks under Kenya Bankers Association (KBA) pledged to integrate TNFD recommendations into their decision-making to embrace nature-related risk management and disclosures.
Speaking at the unveiling of the proposals, UN Assistant Secretary-General Elizabeth Maruma Mrema called for urgent measures to urgently address environmental degradation.
“Nature degradation is increasing, and with six of the nine planetary boundaries already breached, nature risk is a financial risk. Yet to date, businesses have mostly considered nature to be an unlimited and free provider of critical inputs into their operations and value chains,” said Mrema.
KBA Governing Council Chair John Gachora called for the integration of nature into governance structures, strategic planning, and risk management frameworks for posterity.
“It is important to integrate nature positive business practices in our governance structures, strategic planning, risk, and impact management frameworks while having clear targets to pursue into the future,” stated Gachora.
Equity Group Holdings CEO James Mwangi challenged the private sector to play a greater role in addressing the challenges caused by climate change to businesses and people.
“We appreciate that to manage the risks to lives, livelihoods and financial risks to businesses we need to solve the integrated impact of nature, climate and people and that the private sector has a key role to play in nature climate action,” said Dr Mwangi.
He added, “This is why at Equity, we joined the Africa Natural Capital Alliance (ANCA) as a founding member, to ensure a coordinated Africa voice with the private sector as a key partner in solution generation towards the TNFD Framework.”
The proposals unveiled at the Climate Week NYC in September, 2023 capture two years of design, development and talks with over 1,200 institutions, resulting in four draft releases.
They are aligned with the Taskforce on Climate-related Financial Disclosures (TCFD) and the standards set by the Global Reporting Initiative (GRI) and the International Sustainability Standards Board (ISSB).
TNFD Recommendations are a response to growing demands from shareholders, regulators, and customers for firms to disclose their impact on biodiversity and nature-related loss.