Turning Nature into an Asset: South Africa’s Financial Sector Prepares for Nature-Related Risks

UNDP and partners introduce South Africa’s finance institutions to the Taskforce on Nature-related Financial Disclosures (TNFD) through trainings in Johannesburg and Cape Town.

August 28, 2025

One of the participants at the TNFD training actively contributing to the nature in finance discussion

UNDP

The United Nations Development Programme (UNDP), under its Biodiversity Finance Initiative (BIOFIN) in South Africa, together with the Banking Association of South Africa, has successfully hosted the first Taskforce on Nature-related Financial Disclosures (TNFD) training in the country. The sessions, held in Johannesburg and Cape Town, brought together finance institutions, asset managers, and insurers to explore how to integrate nature into financial decision-making.

This milestone training builds on the momentum of the Global Biodiversity Framework and the growing recognition that nature is no longer just an environmental concern — it is a material financial issue.

In South Africa, this reality was starkly highlighted in 2022 when floods in KwaZulu-Natal caused the tragic loss of life, widespread displacement, and economic disruption. What began as an environmental disaster quickly evolved into a social crisis and ultimately a financial shock. Insurers faced record claims, investors absorbed costs from disrupted supply chains, and lenders grappled with defaults. The lesson was clear: financial bottom lines are deeply interconnected with nature.

At the same time, financial institutions are increasingly embracing the principle of double materiality — the understanding that nature impacts finance, and finance impacts nature. Investment and lending decisions can either heighten risks or help mitigate them, shaping the future of ecosystems and economies alike.

The TNFD framework provides a structured approach to credible disclosures, risk management, and opportunity identification. In South Africa, regulators are already advancing climate-related disclosures and considering pathways for nature-related reporting. Disclosures are therefore not only about compliance, but about future-proofing portfolios, managing risks, and positioning South Africa as a leader in nature-positive capital markets.

With this training, UNDP reaffirmed its commitment to turning nature from an externality into an asset — fostering innovation, resilience, and sustainable growth in partnership with the financial sector.