The UN Environment Programme Finance Initiative (UNEP FI) is partnering with key organisations to accelerate market adoption of nature-related financial disclosures. The first strategic initiative launched by UNEP FI in partnership with the UN Sustainable Stock Exchanges Initiative (UN SSE) aims to build capacity in stock exchanges. The two bodies will develop model guidance to help stock exchanges support listed companies in adopting and implementing the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD). “Stock exchanges are uniquely positioned to assist companies in adopting globally recognised frameworks like the TNFD, which advance market transparency and contribute to the achievement of the Sustainable Development Goals,” said Anthony Miller, Chief Coordinator of the UN SSE Initiative. Meanwhile, UNEP FI is also working with the Principles for Responsible Investments (PRI) and World Business Council for Sustainable Development (WBCSD) to support TNFD-aligned disclosures. “This collaboration builds upon our earlier work with the TNFD and partners to provide market clarity and contribute to nature-positive goals,” said UNEP FI Head Eric Usher. “By engaging with global financial actors and real economy players, we can ensure the financial sector plays a central role in advancing biodiversity goals and building resilience in a rapidly changing world.”

Mizuho Bank has partnered with GenZero, owned by Singapore sovereign wealth fund Temasek, to develop transition credits for the phasing out of coal-fired power plants (CFFPs). Mizuho Bank is a Japanese financial services company, while GenZero is an investment platform focused on accelerating decarbonisation globally. According to GenZero, CFFPs are the largest source of carbon emissions globally. Frederick Teo, CEO of GenZero, said that the two entities would leverage their collective expertise and regional connections to collaborate on energy transition opportunities, build greater awareness for transition credits, and unlock opportunities to support coal-to-clean initiatives. “As a major global economy, Japan’s technological capabilities, commitment to climate goals, and active participation in regional and international cooperation makes it an essential market in advancing Asia’s decarbonisation agenda,” he added. One of the main challenges to pivoting away from coal as a source of power is the question of who will bear the costs. Shinichi Tsunoda, Executive Officer and General Manager, Sustainable Business Promotion Department at Mizuho Bank, said: “By ensuring fair evaluation of decarbonisation initiatives and fair sharing of costs across regions, transition credits open a path for quickly withdrawing from coal-fired power while avoiding economic drawbacks.” 

The Taskforce on Nature-related Financial Disclosures (TNFD) has launched two new capacity-building tools for market participants and for third-party training providers, as the organisation aims to respond to skill shortages on nature-related issues. The Learning Lab enables interested individuals to directly access educational resources, while the Trainer Portal offers a suite of materials for use by professional trainers. Both tools are available via TNFD’s online Knowledge Hub. More than 1,700 organisations are members of the TNFD Forum, with 20 national or regional Consultation Groups established and more than 520 TNFD adopters. “Across sectors and geographies, business and finance leaders increasingly realise that the resilience of their business and investment returns depends, in part, on the resilience of nature,” said Tony Goldner, Executive Director of the TNFD. “The release of these learning tools on the TNFD website today is further evidence of the Taskforce’s commitment to equipping market participants with accessible, practical guidance as they look to build the confidence and capacity for their organisation to take concrete action.” Last month, the TNFD released four new sets of finalised sector guidance, as well as draft guidance for three further sectors. The TNFD is due to issue a final set of recommendations for its Nature Data Public Facility in late 2025.

A workstream of the Investment Consultants Sustainability Working Group (ICSWG) has published its first paper to help UK pension scheme trustees focus on more impactful investment decisions. The core objective of the workstream, which was set up in early 2024, is “to help and enable pension scheme trustees to focus more on impactful investment decisions and less on reporting and regulatory compliance,” according to the ICSWG. In its position paper, the workstream proposes a unified sustainability reporting framework for pension schemes to replace the current patchwork of reporting standards, shifting the focus of pension fund regulation from single materiality to double materiality, and dismantling barriers to greater investment in illiquid for pension schemes. A key part of this last recommendation would be to incentivise insurance companies to accept more illiquid assets as collateral, meaning that pension funds would not be so reluctant to hold them. The ICSWG was set up in 2020 and is a collaboration between 19 UK investment consultancy firms. “It’s clear that participants in the investment chain should play a fuller role in policy and regulation, as these frame the well-functioning capital markets on which our clients’ financial well-being depends,” said Paul Lee, Head of Stewardship and Sustainable Investment Strategy at Redington.