FINANCING NATURE: IS THE SOUTH AFRICAN FINANCIAL SECTOR READY TO REPORT ON NATURE-RELATED FINANCIAL DISCLOSURES?

The report evaluates the South African financial sector's capacity to adopt the TNFD framework, finding that while there is high recognition of the sector's impact on nature loss, there is a significant gap in the implementation of nature-related targets and expertise. It highlights the economic value of South Africa's ecosystem services and argues that private finance is essential to meet the Global Biodiversity Framework's '30x30' conservation target.

• A majority of surveyed South African financial institutions (83%) acknowledge that their sector has both a direct and indirect impact on nature loss, yet only 27% have established nature-related targets.
• Climate change is perceived as the primary driver of nature loss in South Africa by 92% of survey respondents, followed by land-use change (50%), resource use and exploitation (42%), and pollution (33%).
• There is a significant capacity gap in the sector, with less than 30% of respondents possessing the expertise required to implement strategies that positively address the impacts of nature loss.
• South Africa's GDP shows a moderate dependency on biodiversity and ecosystem services, with 27% considered highly dependent and 30% moderately dependent.
• The economic value of ecosystem services from terrestrial, freshwater, and estuarine habitats in South Africa was estimated at at least R275 billion per year in 2017.
• Private sector finance is deemed crucial for South Africa to achieve its national commitment to the Global Biodiversity Framework (GBF) '30x30' target, as public funding alone is insufficient.
• The South African financial sector's adoption of the TNFD framework is currently very low, with a reported zero per cent adoption among insurance companies, institutional investors, and locally controlled banks listed on the Johannesburg Stock Exchange (JSE).
• Common challenges hindering the adoption of nature-related disclosures include limited awareness, lack of consistent data availability, and a lack of standardised reporting.
• Sanlam Investments has piloted the TNFD framework, identifying nature-related risks in renewable energy (flood impacts on supply chains), food manufacturing (water access), and agriculture (transition risks from consumer preferences).

APA

Engel, W., & Selota, T. (2024). FINANCING NATURE: IS THE SOUTH AFRICAN FINANCIAL SECTOR READY TO REPORT ON NATURE-RELATED FINANCIAL DISCLOSURES? WWF South Africa. https://wwfafrica.awsassets.panda.org/downloads/wwf-financing-nature_draft-4_27mar24.pdf?48662/financing-nature

Chicago

Engel, Wendy, and Thabang Selota. FINANCING NATURE: IS THE SOUTH AFRICAN FINANCIAL SECTOR READY TO REPORT ON NATURE-RELATED FINANCIAL DISCLOSURES? WWF South Africa, 2024. https://wwfafrica.awsassets.panda.org/downloads/wwf-financing-nature_draft-4_27mar24.pdf?48662/financing-nature.

Wikipedia

{{cite report |last1=Engel |first1=Wendy |last2=Selota |first2=Thabang |title=FINANCING NATURE: IS THE SOUTH AFRICAN FINANCIAL SECTOR READY TO REPORT ON NATURE-RELATED FINANCIAL DISCLOSURES? |publisher=WWF South Africa |date=2024 |url=https://wwfafrica.awsassets.panda.org/downloads/wwf-financing-nature_draft-4_27mar24.pdf?48662/financing-nature |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{engel2024financing, author = {Engel, Wendy and Selota, Thabang}, title = {{FINANCING NATURE: IS THE SOUTH AFRICAN FINANCIAL SECTOR READY TO REPORT ON NATURE-RELATED FINANCIAL DISCLOSURES?}}, institution = {WWF South Africa}, year = {2024}, url = {https://wwfafrica.awsassets.panda.org/downloads/wwf-financing-nature_draft-4_27mar24.pdf?48662/financing-nature}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }