The Taskforce on Nature-related Financial Disclosures (TNFD), launched in September, plays a pivotal role in aiding the business sector in its approach to nature risks. Modeled after the successful Task Force on Climate-related Financial Disclosures (TCFD), the TNFD aims to create a consistent framework for reporting on nature-related issues, with a specific focus on nature and biodiversity. It provides organizations with guidelines to assess their dependencies, impacts, risks, and opportunities related to nature. These can be addressed through integrating gender considerations across four pillars: within the organization’s governance processes, strategies, risk management, and through the development of metrics and targets.
Governance level
Organizations can improve their gender responsiveness at the governance level through more balanced gender representation in their decision-making. One way to do this could be to set targets for gender representation at the senior management level. This is an approach that many UNEP FI members have adopted, including , , and . Gender can also be considered at the governance level through specific reference to women as part of the organization’s human rights and stakeholder engagement policies. For example, ING produces an annual which provides an overview of how they embed their commitment to human rights within business conduct, including through client engagement. As part of this broader commitment to human rights, in 2018 they signed the and developed the Lioness network to promote diversity and inclusion for women within the workplace. The TNFD Framework recognizes the importance of stakeholder engagement through consultation and capacity building, which can make communities more resilient to the impacts of natural risks. To assist organizations in improving their stakeholder management processes, TNFD produced the .Strategic level
At the strategic level, organizations are encouraged to assess and disclose nature-related dependencies on their business model, strategy, and financial planning. This includes disclosure of how the organization makes decisions to mitigate the negative impacts of its business activities on the environment , including through its sourcing and procurement policies. These impact assessments should be conducted in a gender-inclusive way to better understand how different genders may be affected differently. The Kunming-Montreal Global Biodiversity Framework (GBF)’s 2020 can be a useful resource for organizations that are just beginning to develop a gender-responsive impact assessment strategy. An important first step is to close data gaps arising from the limited collection of gender statistics and sex-disaggregated data. UNEP has provided a for organizations to improve the way they collect data relevant to gender and the environment, which can in turn assist organizations to incorporate this data into their business strategies and planning processes.Risk management
As part of their risk management processes, businesses should specifically consider gendered impacts and vulnerabilities related to nature-based dependencies, recognizing and addressing the differential risks faced by women and men. Some of these risks may include women’s limited access to and control over land and property, which can restrict their ability to equitably share in profits within the agriculture and forestry sectors. Women in nature-dependent industries may be subject to economic disparities due to gender-based wage gaps and limited access to credit and financing. Some UNEP FI members have already taken steps to mitigate these risks, for example, through financial health and inclusion programs that specifically target women entrepreneurs, especially those within nature-based industries. For example, Wema Bank, based in Nigeria, to address gender-based economic disparities and encourage women’s financial inclusion through support for women-led enterprises.Metrics and targets
Finally, organizations working to adopt the TNFD framework should also include gender considerations when setting their metrics and targets. UNEP FI members can access additional resources on setting gender targets across their business operations and supply chains. These resources include the publicly available Guidance on Gender Equality Target Setting, as well as a member’s area with additional resources and access to best practice, case studies and examples on gender equality.
In addition, UNEP FI has also prepared a fact sheet on A Gender-Responsive Approach to Nature-Based Disclosures for Financial Institutions which you can access here.
In conclusion, incorporating a gender-responsive approach in addressing nature-related risk is essential for the financial sector to fully understand the impact of nature-related risks and to develop strategies that are inclusive and equitable. Financial institutions can use the TNFD’s four pillars as a valuable tool to adopt a gender lens in their assessment and disclosure practices. This proactive approach will lead to a more sustainable and equitable future where both nature and gender are given their due consideration, and financial institutions play a pivotal role in driving this transformation. If you would like to find out more about how UNEP FI can support your organization to set gender targets as part of the TNFD framework or as part of your organization’s broader commitment to gender equality and social sustainability, please reach out to arrange a consultation .