The report outlines an urgent need to enable transformative change in the way economies interact with nature. The current state of the natural world is crucial to global economies and requires concerted efforts from organisations across society, including governments, financial institutions, and businesses.
Key findings
The report identified the main key trends in nature-related risks associated with different economic activities. It provides a detailed overview of the main dependencies and impacts for ten high-risk sectors, such as agriculture, forestry, and fisheries, energy, mining, transportation, food and beverages, apparel, utilities, chemicals, manufacturing, and construction.
Comparing nature-related risks for key sectors
The report identified similarities and differences between the types of nature-related risks faced by priority sectors. Developing an impact disclosure framework that applies to all sectors is a viable option because there are clear similarities of impact types across the sectors. Additionally, the focus on high-risk sectors can support financial institutions and other interested parties to take a prioritised approach to developing their understanding of the main nature-related risks associated with different economic activities.
Comparing data needs and availability for key sectors
Several core data requirements are identical for all sectors, such as the need for data on the locations of activities and the pressures they are exerting on nature, and could form a common framework applicable to all companies. Companies should account for data needs and availability when developing their nature-related reporting.
High-risk sector overviews
The report presented sector overviews that provide information on the definitions of each sector, why this sector is a high-risk or priority sector, and their direct impacts and dependencies. The report provides sector-specific data that companies should consider, including details on the type of activity carried out by the company, sector-specific sustainability-linked certifications, or sector-specific practices that affect nature, such as the use of pesticides.
Recommendations
The report recommends that financial institutions develop a sectoral focus towards assessing nature-related risks and recommends that companies undertake precise assessments to minimise nature-related risks and create new nature-related opportunities. The report also suggests that the Task Force on Nature-related Financial Disclosures (TNFD) should account for similarities and differences across sectors to ensure the success of the final framework.
