The federal environment department has engaged KPMG to canvass the views of industry associations and other interest groups on new "TNFD" nature risk disclosure guidance.
KPMG's Australia-based global lead on natural capital and biodiversity, Carolin Leeshaa, told Footprint the federal department has hired it "to conduct in-depth market consultations" on draft global recommendations for business disclosures of nature risks and dependencies.
The recommendations are being developed by the global Taskforce on Nature-related Financial Disclosures Taskforce (TNFD), and Leeshaa is one of its 34 senior executive members.
The TNFD taskforce is using the TCFD climate disclosure framework as a springboard for its recommendations, which are currently out in first draft form, with an updated draft due in June.
Leeshaa said she was in the process of kick-starting consultations with a wide range of organisations, including National Farmers Federation, the Minerals Council, the Australian Council of Superannuation Investors, the Australian Sustainable Finance Initiative, the Responsible Investment Association of Australia and the Business Council.
The consultation, which is also supported by the TNFD Taskforce, aims is to solicit feedback on how to improve the next draft "to really increase the broad adoption of this framework".
The TNFD is a crucial global initiative and it is essential to ensure that the final version is "fit for purpose", including for organisations in Australia, she said.
Prepare now
Leeshaa recommended that businesses take steps now to "get involved and get ready" for TNFD.
"It's crunch time and we don't have any more time to waste," she said, describing the TNFD framework as "an opportunity to give nature a seat at the board table".
Some companies in sectors such as agribusiness, food and retail are already starting to do so, through measures such as benchmarking their key nature-dependent supply chains against global peers, she added.
Leeshaa recommended that businesses focus initially on a particular asset class, commodity or value chain, rather than attempting to immediately carry out a broad assessment of risks and dependencies.
It's also important for businesses to think about how they will develop a clear plan for managing nature risks and opportunities, and who will be responsible for it, she said.
In addition, companies need to start identifying the nature-related impacts and dependencies that are material for their activities, and boards need to have a good understanding of the issues, she emphasised.
As part of that work, Leeshaa recommended that businesses collate geospatial data relevant to their operations and supply chains, noting that a list of data tools is available on the TNFD website.
Leeshaa noted that Australia had made the second largest government financial contribution to the development of the disclosure recommendations (behind the UK), and she noted that this was an indicator of its support for the TNFD process.
The taskforce, which is supported by an advisory forum that has more than 300 members, aims to finalise its disclosure framework next year.
