Nature is the new climate: a practical way of adopting nature-related financial disclosures
The verdict is in: nature is the new climate. With natural capital supporting half of global GDP, corporations are expected to fully integrate nature into their business plans.
By Antonio Carrillo Doblado
Consider the many climate-related frameworks and forums that have emerged over the last decade from the Science Based Targets initiative, to the Task Force on Climate-Related Financial Disclosures to COP. These are all now being replicated for nature, and the reason is clear: we all rely on nature, from our atmosphere to oceans, all the way to ecosystems and mineral resources. Natural capital supports over half of global GDP. All companies are now expected to integrate natural capital as part of their business plans.
Holcim’s approach to nature:
At Holcim, our journey on nature started years ago. We set clear targets, linked to executive remuneration, to reduce water intensity throughout our operations, prioritizing our actions in highwater- risk areas. Holcim was also the first in the construction sector to commit to a measurable positive impact on biodiversity with transformative rehabilitation plans backed by science-based methodologies.
These practices helped Holcim to be selected by the Science Based Targets Network (SBTN) to pilot the world’s first science based targets for nature, leading us to become a member of the Taskforce on Nature-related Financial Disclosures (TNFD) and an early adopter of their recommendations.
What is TNFD and why is it important?
For those not yet familiar with this framework, the TNFD is an initiative focused on integrating nature-related risks and opportunities into financial decision-making. It requires companies to report nature-related insights that provide business executives and investors with better-quality information which can help improve strategic planning, risk management, and asset allocation.
How did Holcim start adopting TNFD?
At Holcim, we embarked on our journey to adopt the TNFD recommendations in 2021, when we were selected to be an official task force member. In 2022, we piloted the TNFD beta framework and, during this exercise, a nature-related risk and opportunity gap analysis was performed. We are now closing these gaps as well as leveraging our experience of integrating the Task Force on Climate-related Financial Disclosures (TCFD) recommendations into our enterprise risk management process.
How did you run the implementation?
We included nature aspects in our annual risk assessment exercise and identified short- to medium-term threats at a local level. We use external tools such as the Exploring Natural Capital Opportunities, Risks and Exposure (ENCORE) system and the World Resources Initiative Aqueduct to ensure that our most material nature-related impacts and dependencies are integrated into the company’s strategy.
What have been the main challenges?
While at Holcim we have benefited from an early implementation of the TCFD framework, nature frameworks face some challenges compared to the climate. For instance, greenhouse gas protocols and accounting methods have been in place for two decades, while there are yet no equivalents for nature, in particular in the area of biodiversity. This is why we developed the Biodiversity Indicator and Reporting System (BIRS) together with the International Union for Conservation of Nature (IUCN).
Leadership through partnership
Shifting the flow of global capital to more positive outcomes for nature and society requires strong collaboration. In 2023, we entered a three-year partnership with IUCN to preserve nature and advance nature-positive development in the built environment. IUCN will also support us in driving and promoting the inclusion of biodiversity into existing and future building standards. This underscores the importance of collective corporate responsibility in reversing nature loss and promoting sustainable growth.
We encourage all organizations to read the TNFD recommendations, begin assessing their nature-related risks and opportunities and start taking meaningful, focused action.
Benefits of adopting TNFD Recommendations
TNFD is an effective guideline to facilitate the integration of nature into the decision-making process, including early identification of nature-related business opportunities. At Holcim we are putting our solutions to work to make cities climate-resilient and improve people’s quality of life through:
Solutions designed to protect from coastal flooding
Basalton shore protection system for coast and revetment areas
Hydromedia, our permeable concrete, that works as a water management system by rapidly absorbing rainwater and reducing the risk of flooding
Enabling green roofing systems to reduce the urban heat island effect
Antonio Carrillo Doblado
is the Vice-President of Sustainability at Holcim, the global leader in building materials and solutions, headquartered in Switzerland. With over 15 years of experience across various corporate and operational roles, Antonio has held strategic positions including Group Head of Climate and Energy, and Head of ESG Reporting.