Nature Positive Corporate Assessment Guide for Financial Institutions 2025

–TNFD: TNFD provides guidance for disclosure of specific nature-related metrics. There are two categories of disclosure metrics: 1) core metrics and 2) additional metrics. Both include metrics for all sectors as well as sector-specific metrics.39 –CDP: The CDP integrated questionnaire used for environmental disclosure requires companies to provide nature-related metrics through its modules on water security, forests, plastics and biodiversity.40 –GRI: In the topical disclosure standards, the GRI requires companies to report a range of metrics on biodiversity, water and effluents, materials (recycling) and waste.41 –Nature Positive Initiative: This organization proposes a set of metrics to evaluate changes in the state of nature. There are ongoing efforts to explore how state-of-nature metrics can be integrated into respective frameworks of initiatives such as SBTN or TNFD.42 –The World Business Council for Sustainable Development (WBCSD): This organization is developing a nature metrics portal collating sector-relevant metrics from global and sector- specific sources.43How financial institutions are getting started: Data that financial institutions can use to start assessing companies is already accessible. Globally, 12,545 companies have reported through the integrated CDP questionnaire on biodiversity in 2024. Meanwhile, there were 9,666 responses on water security, 5,615 on plastics and 3,851 on forests. Respondents provided data on metrics such as availability of water-, plastics- or forest-related activities.44 Some leading financial institutions developing their initial company nature assessments use CDP data as a foundational resource and are preparing their frameworks on that basis until data availability improves. Despite the CSRD omnibus proposal and related consequences, such as a decreased scope of companies disclosing on CSRD, availability of corporate data on nature is expected to improve from 2025 onwards, as both EU companies and global companies with significant operations in the EU will soon be required to disclose nature-related metrics under the CSRD. Coupled with this is the increasing number of companies globally adopting the TNFD, which in turn is increasing the number of companies disclosing on a broader range of nature-related metrics. CSRD disclosure timeline FIGURE 6 CSRD is expected to increase nature-related metrics disclosure CSRD omnibus proposed changes to timelines (as of March 2025)Companies required to disclose under CSRDWaves Companies being already/uni00A0subject to Non-Financial Reporting Directive (NFRD)1Listed SME33rd wave 2027 Non-EU groups generating turnover of more than €150 million • €450 million in the EU and at least one branch/subsidiary44th wave 2029 1st wave 2025 Large companies2 meeting at least two of the/uni00A0following criteria: – €50 million in turnover – €25 million in total assets – 250 employees • 1,000 employees2nd wave 2026 Removed from the scope Moved to 2028 Notes: Reporting on the preceding financial year; 1. Companies subject to the NFRD are large public-interest companies with more than 500 employees; 2. EU-based companies, including EU subsidiaries of non-EU groups; 3. SME listed on EU regulated market; 4. Additional criteria applies to subsidiaries (large or listed), branches (more than €40 million net turnover); all thresholds must be met on two consecutive balance sheet periods Source: Oliver Wyman. However, financial institutions can already start requesting key priority nature-related metrics from clients to inform climate and environment risk assessments. An analysis of the metrics mandated for disclosure under various standards and initiatives reveals that key metrics are consistently required across most standards and initiatives (including water consumption, emissions to water by pollutants or total land area in use). Of the 67 identified CSRD pollution, water, biodiversity and waste metrics, six overlap with three other disclosure standards, initiatives or platforms (TNFD, CDP and GRI), 18 overlap with two other standards and 14 overlap with one other standard. Financial institutions can start to engage with companies and CDP , acting as disclosure platforms to collect this information, regardless of whether these companies are yet subject to specific disclosure requirements. Nature Positive: Corporate Assessment Guide for Financial Institutions 24