(Yicai) Oct. 13 -- The global push to integrate nature into finance is rapidly gaining momentum through the Taskforce on Nature-related Financial Disclosures, according to the co-chair of the international initiative.

The TNFD is not merely an updated term for corporate responsibility, but it represents a fundamental shift in the framework, David Craig, who is also the co-founder of financial data giant Refinitiv, said in a recent interview with Yicai. While environmental, social, and governance has historically served as a disclosure framework defining all aspects beyond pure finance, the TNFD is fundamentally an assessment and strategic framework, he noted.

The core goal of the TNFD is to holistically assess interaction with nature across the atmosphere, fresh water, oceans, and land to help businesses and investors engage in strategic planning and ensure capital flows toward nature-positive outcomes, Craig pointed out.

The adoption of the TNFD has been remarkable, with 620 adopters representing over USD20 trillion in assets under management, a momentum that shows that investors are taking nature-related risks seriously, Craig said, adding that more than half of these adopters are from Asia, which underscores the region's commitment to the initiative.

Regarding concerns about costs, the focus should be on the "cost of not taking action," Craig noted, citing examples of adopters who found the process invaluable for building organizational resilience, with the initial assessments typically requiring the involvement of only one to two employees on average.

In addition, artificial intelligence and other technologies are playing a "huge" role in simplifying and accelerating the assessment and data collection process, from analyzing reports to interpreting satellite data, he pointed out.

The TNFD is already helping companies translate disclosure into a competitive advantage, Craig said, giving as an example a luxury goods firm that has revised its sourcing strategy and an investor that adjusted exposure to tech sectors in response to water dependency risks.

Editor: Martin Kadiev