MEDIA RELEASE (AU)

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.

“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.