At STTG AG, we are excited to share our alignment with the latest developments from the Taskforce on Nature-related Financial Disclosures (TNFD). As an early adopter of the TNFD framework, we are integrating nature-based solutions into our operations and reporting practices. With the TNFD marking the first anniversary of its recommendations in September 2024, these updates come at a pivotal time, helping us deepen our sustainability efforts and align with global financial flows aimed at nature-positive outcomes.
TNFD framework News and Updates: Paving the Way for Nature-Based Financial Disclosures
In September 2024, the TNFD celebrated the first anniversary of its official recommendations, marking a significant milestone in the journey toward integrating nature-related risks into corporate reporting. The TNFD framework launched sector specific guidance, focusing on agriculture, forestry, and financial services sectors critical to nature-based economic activities. This updated guidance helps companies, including STTG, assess and disclose nature-related dependencies with a structured, actionable framework.
The TNFD’s alignment with major global reporting frameworks has progressed, ensuring interoperability with standards such as GRI, ISSB, and EFRAG. These efforts help businesses streamline their sustainability reporting, reducing redundancy and enhancing clarity for investors and stakeholders. In April 2024, TNFD framework principles were formally incorporated into the IFRS S1 and S2 standards, underscoring the growing recognition of nature-related issues in mainstream financial decision-making.
During Climate Action Week 2024 in London, the TNFD framework launched additional guidance for nature-based investments, focusing on carbon markets and biodiversity metrics. This highlights the increasing role of regenerative agriculture and carbon credits in global financial strategies. These developments align with the Global Biodiversity Framework, emphasizing that businesses play a crucial role in restoring ecosystems and meeting international biodiversity targets.
Looking forward, TNFD plans to release further sector specific guidance in early 2025 and is actively developing new tools to support nature transition planning. This includes collaborations with organizations like GFANZ and WWF to establish robust frameworks for companies transitioning toward nature positive outcomes. The upcoming COP16 in Cali, Colombia, will feature the release of these new tools and introduce the next wave of companies committed to TNFD-aligned disclosures.
Moreover, TNFD has expanded its partnerships to address data challenges and improve access to nature related intelligence for businesses. The organization recently launched a Nature Data Public Facility (NDPF) blueprint, intended to centralize nature related data, much like the Net Zero Data Public Utility (NZDPU). This initiative aims to catalyze more effective nature-based solutions by streamlining data access and improving decision making for market participants.
These updates reflect TNFD’s growing influence, signaling a shift in global capital flows toward sustainable practices and creating new opportunities for companies like STTG to lead with transparency and impact.
Sector-Specific TNFD Guidance: A Game-Changer for STTG’s Agroforestry Initiatives
During the London Climate Action Week 2024, the TNFD framework launched sector specific guidance targeting agriculture, forestry, and financial services. These sectors directly align with STTG’s operations, particularly our agroforestry projects in Paraguay, which combine forest conservation with sustainable cattle farming.
By adopting the TNFD’s LEAP framework (Locate, Evaluate, Assess, Prepare), we can precisely assess and report nature-related risks while staying compliant with emerging standards like the European Sustainability Reporting Standards (ESRS) and GRI 101: Biodiversity 2024. This integration allows STTG to transparently disclose environmental impacts and identify opportunities to align with regenerative agriculture trends and growing carbon credit markets.
Harnessing Carbon Markets and Regenerative Agriculture: STTG’s Approach
The TNFD’s focus on carbon markets is a major boon for STTG’s reforestation projects in the Gran Chaco. By leveraging the TNFD framework, we demonstrate the tangible value of our initiatives to investors, positioning STTG as a leader in nature-based investment opportunities.
Our regenerative agriculture practices such as rotational grazing and biodiversity conservation have already garnered attention in the global market. With TNFD’s metrics, we can now quantify and communicate the positive environmental outcomes to stakeholders, enhancing our ability to sell carbon credits and attract nature-focused investments.
Widespread Adoption of TNFD framework Aligns Capital with Nature-Based Solutions
TNFD framework has seen remarkable uptake, with over 440 organizations from 49 jurisdictions committing to nature related reporting within the first year of its recommendations. These organizations control more than $6 trillion in market capitalization and $16 trillion in assets under management (AUM). The widespread adoption reflects the growing recognition of biodiversity as a vital component of financial decision making. Systemically important banks (GSIBs) and other major institutions have embraced TNFD framework guidelines, using them to integrate nature positive practices into their operations and investment strategies.
Global Reporting Standards: Seamless Integration with TNFD Guidelines
One of the most impactful updates from TNFD is its alignment with global reporting standards, such as the ISSB’s IFRS S1 and S2 standards and GRI frameworks. This interoperability simplifies our sustainability reporting, ensuring consistency across all value chains without duplicative efforts.
STTG is already leveraging TNFD’s cross-reference tables, which map TNFD metrics to ESRS and GRI indicators. This alignment helps us streamline reporting while maintaining high transparency, reducing costs, and improving data accessibility for stakeholders.
Strengthening Global Collaboration through Key Partnerships
To accelerate adoption, TNFD has formed strategic partnerships with organizations like CDP and the International Sustainability Standards Board (ISSB). A newly signed Memorandum of Understanding (MOU) with CDP ensures seamless integration of TNFD aligned disclosures through CDP’s platform, simplifying environmental reporting. Additionally. These collaborations highlight the increasing need for standardized nature related data, creating greater transparency for investors and businesses across global markets.
Opportunities for Nature-Based Investments in Paraguay: A Strategic Hub
Our base in Paraguay positions STTG perfectly to harness the benefits of TNFD-aligned reporting. The stable regulatory environment in the country, combined with TNFD’s growing emphasis on nature integrated finance, makes it an attractive destination for carbon credit investments and ecosystem restoration projects.
STTG’s leadership in land management and conservation provides investors with reliable access to carbon markets while contributing to the Global Biodiversity Framework’s Target 15 restoring ecosystems and safeguarding biodiversity.
Why TNFD framework Adoption Matters for STTG’s Stakeholders
Becoming a TNFD framework Adopter demonstrates our commitment to transparency, risk management, and environmental stewardship. Here’s what this means for our stakeholders:
- Enhanced Transparency: Our stakeholders gain access to clear, actionable data on how our operations affect and depend on nature.
- Improved Risk Management: Using the TNFD framework, we proactively manage nature-related risks, building resilience into our business strategy.
- Supporting Biodiversity: Our efforts align with global biodiversity targets, contributing to meaningful conservation outcomes and attracting impact-focused investments.
Communicating Our TNFD framework Adoption: Spreading the Word Across Platforms
We are celebrating this milestone through a comprehensive communication strategy:
- Website Update: Highlighting our TNFD adoption and sustainability initiatives prominently.
- Social Media Campaigns: Sharing the news on LinkedIn and Twitter, using official TNFD framework graphics to reach a broader audience.
- Newsletter Focus: Our upcoming newsletter will detail what TNFD framework adoption means for STTG and outline future initiatives.
Looking Ahead: The Future of Nature-Positive Business Practices
As we continue implementing TNFD-aligned disclosures in the 2024/2025 financial year, we are committed to integrating sustainability into every facet of our operations. STTG’s early adoption of the TNFD framework positions us to lead by example, inspiring others to embrace transparency and nature-positive strategies.
Moreover, TNFD framework evolving guidance including updates at COP16 in Cali, Colombia offers additional opportunities for STTG to refine our reporting practices and stay at the forefront of global sustainability efforts.
Aligning Finance with Nature for a Sustainable Future
STTG’s journey as an early adopter of the Taskforce on Nature-related Financial Disclosures is just beginning. By aligning with TNFD’s latest recommendations, we are not only safeguarding our natural capital but also creating lasting value for our investors and communities. Our commitment to nature-based solutions ensures that we remain resilient and profitable while contributing to a healthier planet.
Join us in this journey towards nature positive growth where business success goes hand-in-hand with environmental stewardship. Stay tuned for more updates as we continue to innovate and set new benchmarks in sustainable capital deployment
