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Taskforce on Nature-related Financial Disclosures Recommendations launched in Kenya

Launched globally in September 2023 in New York, the Taskforce on Nature-related Financial Disclosures Recommendations launched in Kenya have finally been introduced to the Kenyan market.

 

The recommendations were introduced to the Kenyan market in November 2023 in partnership with the African Natural Capital Alliance (ANCA), the Kenya Bankers Association (KBA), the World Wide Fund for Nature (WWF) and the Kenya Private Sector Alliance (KEPSA). 

Increasingly, more financial institutions – including Equity Bank Group and Sanlam Kenya – have announced their commitment to begin using the TNFD Recommendations in their operations. By doing so, they aim to enhance decision-making processes for financial service providers and companies, ultimately enabling the shift of financial investments towards nature-positive initiatives and outcomes.

The launch comes following two years of design, development and engagement with over 1,200 institutions and four draft releases. The recommendations are drawn from the widely adopted Taskforce on Climate-related Financial Disclosures (TCFD) and are consistent with the standards of the Global Reporting Initiative (GRI) and the International Sustainability Standards Board (ISSB).

During the launch, Elizabeth Maruma Mrema –TNFD Co-Chair and UN Assistant Secretary-General, emphasised the critical nature of addressing nature degradation. She said: "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."

John Gachora –KBA Governing Council Chair, said that nature is no longer a corporate social responsibility issue but a core and strategic risk management issue that goes hand in hand with climate change. 

“It is important therefore 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,” said Gachora.

Dr. Habil Olaka – Chief Executive Officer, KBA, also reiterated the banking sector’s commitment to embrace actions that advance nature-positive outcomes.

“KBA is proud to be a TNFD Consultation Group co-convener alongside KEPSA and ANCA. The association is keen to encourage financial institutions and businesses to be a force of good for nature. Through our Sustainable Finance Initiative, we are committed to encourage voluntary market adoption of the TNFD recommendations. We will be working closely across the Kenyan and East African banking sector to support them in integrating the Recommendations. We’re excited about what’s to come,” said Olaka.

Dorothy Maseke –ANCA Head of Secretariat, hailed the launch of the recommendations as a step in the right direction, stating “The launch of TNFD recommendations in Nairobi comes at an opportune time. All over the world and particularly here in Africa, the figures on biodiversity loss are astounding. It is not just the scale of the devastation, but the speed with which whole species are being decimated. At the heart of this grave thought is colossal failure of leadership, planning and governance across all levels of society. That’s why it’s quite heartwarming to see the financial services sector roll up their sleeves and decide to mainstream nature preservation in their business. We are also adopting the framework into our own operations.”

Sanlam Group, Africa’s largest non-banking financial services provider, is one of the first companies in Africa to announce its commitment to publish its first TNFD-aligned disclosures.

Christine Mwangi –Regional Coordinator, Africa Sustainable Investment and Infrastructure Programme at WWF-Kenya said: “As founding partners of the Taskforce for Nature-related Financial Disclosures (TNFD) we commend the commitment Kenya is making today towards adopting the TNFD reporting recommendations. This is a milestone in the transition to a nature-positive economy. As the adage goes, you can’t manage what you can’t measure."

The final TNFD recommendations come at a time when there has been considerable pressure from shareholders, regulators, and customers for companies to disclose the impacts of biodiversity and nature-related loss. The recommendations are consistent with existing and emerging IFRS and GRI Reporting Standards and are aligned with the requirements of the Kunming-Montreal Global Biodiversity Framework. 

Left to Right:Thomas Viegas, TNFD Partnership Lead, Kelvin Massingham, Director, Risk and Resilience, FSD Africa, Dorothy Maseke - Africa Lead of Nature Financing, Dr Habil Olaka - KBA Chief Executive Officer, , Elizabeth Mrema – UN Assistant Secretary General, Dr. James Mwangi, Group MD, Equity Bank, Faith Ngige, CBIN-K Coordinator, KEPSA, John Gachora, Managing Director NCBA, Alice Ruhweza, Senior Director, Policy Influence and Engagement: Africa & Asia WWF, Dr. Patrick Tumbo, Group Managing Director & Chief Executive Officer, Sanlam Kenya Plc & Sanlam Pan Africa