Nature Scorecard Update

In March 2024, Planet Tracker released the Nature Scorecard which identified those companies which are perceived by financial institutions as influential in terms of nature and biodiversity. See the Nature Scorecard dashboard here. This update incorporates significant changes and provides developments from the past few months. The revised Nature Scorecard includes updates from the TNFD, along with new additions like the WBA Nature Benchmark. By providing this update, Planet Tracker aims to empower stakeholders with the information needed to protect and enhance our planet’s vital natural resources.

TNFD updates

At London Climate Action Week (LCAW), the Taskforce on Nature-related Financial Disclosures (TNFD)ⁱ announced a 30% increase in early adopters of their corporate reporting recommendations since January.ⁱⁱ This expansion includes an additional 96 organisations, comprising companies and financial institutions, of which 68 corporations are now featured in the Nature Scorecard. Notably, the sectors with the highest uptake of TNFD adopters are Hardware,ⁱⁱⁱ Household & Personal Products, and Real Estate, each with five corporations embracing the guidelines. This highlights the increasing commitment across diverse sectors to integrate nature-related risks and opportunities into their financial decision-making processes, further enhancing transparency and sustainability in corporate practices.

Approximately 43% of the new adopters are based in Europe, reflecting the region’s strong regulatory environment. However, Asia and the Pacific also show significant engagement, with around 42% of the adopters coming from these areas. North America and Latin America each account for about 6% of the adopters, while Africa and the Middle East make up the remaining 3%¹.

WBA Nature Benchmark

The Nature Scorecard also incorporates the World Benchmarking Alliance’s (WBA) Nature Benchmark.^iv The WBA Nature Benchmark is a tool designed to evaluate and rank the environmental sustainability practices of companies across various sectors. This benchmark focuses on how businesses impact nature, including biodiversity, ecosystems and the use of natural resources. It aims to drive corporate accountability and transparency by highlighting best practices and identifying areas for improvement.

The WBA Nature Benchmark assesses companies on their policies, performance and disclosures related to key environmental issues, thereby encouraging them to adopt more sustainable and nature-friendly operations. Through this, the WBA seeks to promote a global shift towards practices that protect and restore natural environments, contributing to overall ecological health and sustainability.

The WBA nature benchmark evaluates 767 companies, of which 106 are already included in the Nature Scorecard, leaving 660 new additions. This benchmark spans various sectors, with Food and Agriculture representing the largest share at 46%, followed by Metals and Mining at 13%, and Apparel & Footwear at 9%. Other sectors such as Chemicals, Construction & Engineering, Construction Materials & Supplies, Containers & Packaging, Paper and Forest, Pharmaceuticals & Biotechnology and Tyres & Rubber each constitute less than 10% of the total. Geographically, the largest representation is from East Asia & Pacific and Europe, each accounting for 31%, followed by North America at 24%, Latin America at 6%, South Asia at 4%, Sub-Saharan Africa at 3%, and the Middle East at 1%.

Business for Nature

The Nature Scorecard also incorporates the Business for Nature endorsement for Cop 16.^v This is a voluntary endorsement by over 130 businesses and FIs that calls for renewed policy ambition to implement the Global Biodiversity Framework^vi.

The statement urges governments to adopt and enforce nature policies and regulations with the main recommendations:

1.  Make sure business and financial actors protect nature and restore degraded ecosystems

2. Ensure sustainable resource use and management to reduce negative environmental impacts

3. Value and embed nature in  decision-making and disclosure

4. Align all financial flows to transition to a nature-positive, net zero and equitable economy

5. Adopt or strengthen ambitious global agreements to address key nature loss challenges

This benchmark spans various geographies, the largest representation of which is from Europe, accounting for 56%, followed by Asia at 17%, North America at 16%, South America at 9%. Africa and Oceania each respectively make up 1%. Latin America at 6%, South Asia at 4%, Sub-Saharan Africa at 3%, and the Middle East at 1%.

Closing Comments

This update to the Nature Scorecard includes over 1,000 companies in total. Adopting these initiatives is crucial for companies as they provide essential guidance on nature reporting. We hope to see more companies voluntarily adopt these initiatives in the future. Planet Tracker will provide future updates regarding the Nature Scorecard as more companies join the initiatives. The ‘biocrastination ’ needs to stop.