UNDP Hosts First TNFD Training in South Africa

UNDP Hosts First TNFD Training in South Africa

Johannesburg, 2025 

The United Nations Development Programme (UNDP), in partnership with the Banking Association of South Africa, has hosted a training session for financial institutions on the Taskforce on Nature-related Financial Disclosures (TNFD). This training has brought together various financial institutions, asset managers, and insurers to learn how to integrate nature into economic decision-making.  

This training comes off the back of the Global Biodiversity Framework and the broad acknowledgement that nature is no longer just an environmental concern — it is a material financial issue. In 2022, South Africa was shaken by the floods in KZN, which caused unprecedented deaths and displacements. However, this quickly turned into more than a social issue; it became a financial issue. Insurers faced record claims, investors absorbed the costs that came with disrupted supply chains, and lenders faced defaults. What started as an environmental issue turned into a social crisis, which became a financial shock, underscoring how financial bottom lines can be disrupted by nature.

At the same time, financial institutions are acknowledging the concept of double materiality. Gone are the days when nature, as a public good, was the responsibility of the public purse. Investment and lending decisions can worsen the risk or mitigate it. Financial flows can shape nature’s future. It is considering these risks and dependencies that disclosures become a key factor, not only for nature but for balance sheets.

The TNFD framework is one of many disclosure frameworks that acknowledge the concept of double materiality — how nature affects finance, and how finance affects nature — providing a roadmap for credible disclosures, risk management, and opportunity identification. Increasingly in South Africa, the regulatory landscape is evolving to embrace these risks and dependencies. The regulators are moving towards climate-related disclosures and exploring the possibility of nature-related disclosures.

Disclosures are not only about compliance, but a financial decision-making tool which acknowledges nature as a credible asset class. Adoption of disclosures can future-proof portfolios, manage downside risks, position South Africa as a leader in nature-positive capital markets.

UNDP is dedicated to turning nature from an externality into an asset, fostering innovation, resilience, and sustainable growth, in collaboration with our financial sector partners.