The Taskforce on Nature-related Financial Disclosures (TNFD) welcomed Bank of China to its Taskforce on Jan 12 as the first Chinese financial institution to join the market-led global initiative.
According to the TNFD, Bank of China will provide expert input and design recommendations on the evolving TNFD guidance for market participants, as well as in relation to a range of market engagement, data and capacity-building initiatives.
“This will include specific support to expand and deepen further engagement by the TNFD with Chinese companies, financial institutions and other key stakeholders for the benefit of the long-term resilience of the Chinese economy,” says the TNFD in a Jan 13 announcement.
Alongside the appointment of Bank of China to the Taskforce, the TNFD also announced the launch of new TNFD consultation groups in China. The Institute of Finance and Sustainability (IFS) will convene a consultation group in mainland China. Meanwhile, the Hong Kong Green Finance Association and Business Environment Council (BEC) will co-convene a consultation group in Hong Kong.
“Together, these developments both highlight and support the growing momentum in the Chinese market to assess and integrate nature-related considerations into financial and corporate decision-making,” says the TNFD, which was established in June 2021 with the support of G20 and G7 governments.
The announcement did not state the specific Bank of China representative who will join the 40-strong Taskforce, which currently includes Esther An, chief sustainability officer of City Developments Limited , as the sole representative from Singapore.
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The TNFD website has also not been updated to include a Bank of China representative on its Taskforce page.
Tim Skeet, member of the executive management committee of Bank of China Limited London Branch, says in TNFD’s press release: “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.”
Skeet adds: “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. This is a vital task that requires multinational cooperation, understanding and the development of global standards. Bank of China will work hard to support this work.”
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David Craig, co-chair of the TNFD, says: “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.”
Craig adds: “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.”
The TNFD provides recommendations and guidance for market participants and other stakeholders about how nature beyond climate should be assessed, managed and reported. Over 500 organisations are now TNFD adopters, and corporates with over US$17 trillion in assets under management (AUM) have committed to report their nature-related issues aligned with the TNFD recommendations published in September 2023.
The TNFD recommendations build on the previous approach and recommendation of the Task Force on Climate-related Financial Disclosures (TCFD) and are aligned with the impact standards of the GRI, the European Union’s Corporate Sustainability Reporting Directive (CSRD) and the sustainability reporting standards of the International Sustainability Standards Board (ISSB).
