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Demystifying Nature-Related Financial Disclosures

Chartered Accountants and Governance Institute logo

Taskforce of Nature FAQs

Monday, 1 July 2024

A new publication: Nature-related Financial Disclosures: Frequently Asked Questions has been jointly developed by Chartered Accountants Australia and New Zealand (CA ANZ) and Governance Institute of Australia.

The publication responds to growing interest from members and stakeholders who want to understand and address nature-related dependencies including the associated impacts, risks and opportunities of business activities.

Ainslie van Onselen, CEO of Chartered Accountants ANZ, said the publication will empower organisations to engage effectively with nature-related risks and opportunities, as approaches to disclosures and terminology rapidly develops.

While there is a current focus on the effects of climate change, more than half of the world’s total GDP, approximately US$44 trillion, is moderately or highly dependent on nature and its services.

Through this simple FAQ, business leaders will be able to understand, incorporate and communicate nature-related dependencies and common issues to interested stakeholders and investors,” Ms van Onselen said.

Some of the questions covered in the publication relate to the definition of nature and topical areas such as biodiversity, the importance of nature to business, greenwashing, the Taskforce on Nature-related Financial Disclosures (TNFD), as well as other fundamental areas relating to nature and the role of business.

Megan Motto FGIA FCG, CEO of the Governance Institute, welcomes the publication and emphasises the significance of this initiative stating, “As leaders, we recognise that every organisation, regardless of size or sector, is intrinsically linked to the environment.”

“It’s important that leaders gain a better understanding of when nature-related disclosures might be required to facilitate sustainable growth and risk management,” she said.

The publication provides essential insights for businesses navigating this evolving landscape and offers guidance for institutions of all sizes to ensure they are in the loop with good governance practices and current global and domestic developments around nature-related disclosures.

“It is important that we are across these developments and are ready to address questions that members are asking in this space and provide practical resources to encourage a deeper dive,” said Ms van Onselen.

The publication also addresses queries relating to whether financial disclosures are mandatory, director obligations around disclosures and how businesses can make environmental claims appropriately.

To view and download the report, visit the Governance Institute of Australia website.

If you have any questions for the Governance Institute of Australia, please email media@governanceinstitute.com.au or contact us on 0477 949 604.

If you have any questions for CA ANZ, please email gillian.bowen@charteredaccountantsanz.com or contact her on 0411 485 421

About Chartered Accountants Australia and New Zealand

Chartered Accountants Australia and New Zealand represents more than 136,000 financial professionals, supporting them to make a difference to the businesses, organisations and communities in which they work and live. Chartered Accountants are known as Difference Makers. The depth and breadth of their expertise helps them to see the big picture and chart the best course of action. www.charteredaccountantsanz.com

About Governance Institute of Australia

A national membership association, Governance Institute of Australia advocates for a community of governance and risk management professionals, equipping over 8,000 members with the tools to drive better governance within their organisation. https://www.governanceinstitute.com.au/

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