On 6th of November 2023, KEPSA, in partnership with the Kenya Bankers Association, African Natural Capital Alliance, Sustainable Finance Initiative (SFI), and World Wide Fund for Nature (WWF), launched the Task Force on Nature-Related Financial Disclosure (TNFD), Kenya Consultation Forum at the Radisson Blu in Nairobi. The launch was graced by the Co-Chair of the TNFD Taskforce, who is also the United Nations Assistant Secretary, Ms. Elizabeth Mrema. Also present was the Co-Chair of the Kenya forum, Mr. John Gachora (MD, NCBA), Dr. Habil Olaka (CEO, KBA), Thomas Viegas (TNFD Partnership Lead), Kelvin Massingham (Director, Risk and Resilience, FSD Africa), Dr. James Mwangi (Group MD, Equity Bank), and Dr. Patrick Tumbo (Group CEO, Sanlam Kenya). KEPSA was represented by Ms. Faith Ngige, the Climate Business Information Network Kenya Coordinator.

The final recommendations for nature-related risk management and disclosure were launched globally by the TNFD in New York during Climate Week NYC in September 2023 by the Taskforce on Nature-related Financial Disclosures (TNFD) and today introduced to the Kenyan market in partnership with the African Natural Capital Alliance (ANCA), the Kenya Bankers Association (KBA), the Kenya Private Sector Alliance (KEPSA) and WWF

In her keynote speech, Ms. Mrema, co-chair of the TNFD Task Force and UN Assistant Secretary General, expressed gratitude to KEPSA and KBA for taking up the role of co-conveners of the Kenya TNFD Consultation Forum. She highlighted the annual global funding debt, estimated by the Polson Institute at seven hundred billion dollars annually, emphasizing that to tackle nature loss, governments alone cannot solve the global nature crisis. "Private efforts are required to complement government interventions," she said. She further urged everyone to be catalysts of change, noting that the future financial sustainability of businesses depends on nature.Ms. Mrema concluded by congratulating early adopters of the TNFD recommendations and encouraging others to follow suit.

Dr. Olaka, Kenya Bankers Association (KBA) and Co-Convenors of the Kenya Consultation Forum, in his opening remarks, reflected on KBA's contributions to promoting the greening of the financial sector through the Sustainable Finance Initiative (SFI) program. He emphasized KBA's commitment to the TNFD, terming it a pivotal initiative that will ensure transparency in promoting nature-positive bank operations. Dr. Olaka urged private sector members to adopt TNFD recommendations and commended early adopters in Kenya.

Mr. Kelvin Massingham, Director of Risk and Resilience at FSD Africa underscored the economic importance of nature . “Nature-related financial disclosure is not a mere consideration but an imperative for our collective future,” he said. He further shared that the TNFD will help businesses understand the implications of their business operations on the environment and help them make decisions to stop financing nature-degrading projects. He ignited a sense of urgency, challenging participants to embrace the responsibility of environmental stewardship not only in their financials but also in other aspects of business.

Reflecting on Equity Bank's experience as an early adopter of the framework, Dr. James Mwangi, Group Managing Director & CEO of Equity Bank shared the experience of Equity Bank as   an  Early Adopter of the Framework,  reflecting on the role of society  and nature  in the  financial sector. The transformation has evolved transcending   beyond the traditional confines of   profits only.  He  affirmed that the  banking sector's role in environmental responsibility is  a powerful force for positive change. “We appreciate that to manage the risks to lives, livelihoods and financial risks to businesses we need to solve the integrated impact of nature, climate and people and that the private sector has a key role to play in nature climate action. This is why at Equity, we joined the Africa Natural Capital Alliance (ANCA) as a founding member, to ensure a coordinated Africa voice with the private sector as a key partner in solution generation towards the TNFD Framework. This is also why we have committed to be an early adopter of TNFD,” he said.

Dr. Patrick Tumbo, Group Managing Director & CEO of Sanlam Kenya Plc & Sanlam Pan Africa highlighted the significance of sustainable financial practices, mentioning that as an institution, they will adopt the recommendations and only insure industries that support nature recovery. He explained that sustainability is not just a buzzword but a strategic imperative. His words were a compelling reminder that sustainable financial practices are not just an ethical choice but a competitive advantage. Dr. Tumbo's address inspired a re-evaluation of financial paradigms, emphasising the long-term benefits of sustainable practices.

Faith Ngige, CBIN-K Coordinator, KEPSA presented the KEPSA statement, emphasizing the interdependence of the environment with human well-being and economic prosperity. She said that there is growing evidence that degradation of nature poses risks for businesses, capital providers, financial systems and economies, and that these risks are increasing in severity and frequency. “As co-conveners of the TND Kenya Consultation Group, KEPSA is committed to supporting her members through awareness and capacity building in adopting the TNFD Recommendations, and promoting sustainable and responsible business practices,” she said.

Mr. Gachora , KBA Governing Council Chair & MD of NCBA shared NCBA bank's journey, stating that nature is no longer just a corporate social responsibility issue but a core and strategic risk management issue aligned with climate change. “It is important therefore to integrate nature positive business practices in our governance structures, strategic planning, risk, and impact management frameworks while having clear targets to pursue into the future,” he said. Mr. Gachora reiterated the transformative potential of the banking sector for sustainability, positioning it as a catalyst for change and a guardian of our environmental future.

The TNFD Framework was unveiled through a captivating video launch, proclaiming a new era in financial responsibility and capturing the essence of this ground-breaking framework. The unveiling symbolized a turning point in our collective commitment to sustainability.

In a panel discussion on “Advancing Nature Positive Finance and Enhancing the Banking Industry's Ability to Disclose Nature Risk,” moderated by Dorothy Maseke from FSD Africa, experts delved into various aspects of nature financing and TNFD. Panelists included Reshma Shah, Group Sustainability Director at Equity Bank; Sechaba Selialia from Oliver Wyman; Jane Waiyaki, WWF Senior Manager of Sustainable Finance; and Rosalid Rwaru, Environment Health Safety and Sustainability Lead at Bio Food Products Ltd. The discussion emphasized the importance of integrating nature considerations into financial decisions, promoting TNFD framework adoption, engaging the private sector in sustainability efforts, fostering collaboration among stakeholders, and seeking innovative solutions for nature financing.

The event concluded with closing remarks delivered by Alice Ruhweza, WWF Senior Director of Policy Influence and Engagement, who emphasized the importance of continuing efforts in the field of nature-related financial disclosure reassuring their support. She concluded by expressing gratitude to all the participants for their active involvement and contribution to the success of the event.

The launch provided a robust foundation for further progress in this crucial initiative, highlighting the importance of environmental responsibility in the financial sector. The announcement of early adopters is scheduled for January 2024 during the World Economic Forum in Davos.