Corporate biodiversity guidance and regulation is expected to eventually move towards a more sector-specific and granular model, a webinar heard Tuesday, given the highly localised nature of impact and mitigation action.

The virtual event, held by ESG software company Novisto, focused on corporate reporting on nature and biodiversity and evaluated the different emerging frameworks and guidance soon to be finalised.

Chief ESG Innovation Officer, Marie-Josee Privyk, outlined her view that soon there will be a greater focus on separating different sectors and their standards for reporting on nature and biodiversity impact.

“You are going to start seeing the development of industry specific standards. The [International Financial Reporting Standards (IFRS)] wants to develop sector specific standards, and the [EU sustainability reporting standards] in Europe want to develop sector standards so I think you are going to start to see more granular sector-specific guidance and requirements coming in over time,” she told the event.

“It’s just very, very early days.”

Multiple bodies, as well as the IFRS and the EU, are now looking to publish corporate guidelines or regulation, including the Taskforce on Nature Financial Disclosures (TNFD), due to publish final guidelines in September in what has been a clear building of momentum.

Speakers during the webinar cited the catalytic signing of the Global Biodiversity Framework (GBF) last December, which carves out a clear role for the private sector to both clean up their value chains as well as invest in nature positive outcomes.

David Hageraats, also on the Novisto ESG team, pointed to the “very clear direction” of Target 15 of the framework in particular, which provides a call to action for firms.

“Market regulations are on the way, if not already here … [you need] to start preparing and socialising these with your leaders and organisations.”

Meanwhile, others pointed to the strong position the corporate sector has in terms of the improvements in measurement capabilities and overall access to information.

Gabriela Hermosilla Goncalves, technical officer at the UNEP, said she also expected disclosure to become more granular over time, but that those who had already begun work on the guidance set out by the Task Force on Climate-Related Financial Disclosures (TCFD) were in a good place to start when the TNFD guidelines launch.

“The TNFD has really done a great job so far in bringing everything together that was pretty much out there and trying to bring this consistency, alignment and this understanding [to companies],” she said.

“Most of the corporates and the financial institutions we have spoken to have highlighted the challenge they have in conveying this story and getting buy-in internally,” she added, referring to the need to address nature impact.

The final TNFD guidances is due to be published during New York Climate Week on Sep. 18.

By Roy Manuell – roy@carbon-pulse.com

*** Click here to sign up to our weekly biodiversity newsletter ***