Norges Bank Investment Management (NBIM) released new Nature Expectations outlining how portfolio companies should identify, assess, and manage nature-related risks and impacts. NBIM views nature loss as a financially material risk and expects companies to take a systematic, integrated approach to governance, strategy and disclosure.
NBIM encourages alignment with emerging global frameworks, including the Taskforce on Nature-related Financial Disclosures (TNFD) (which is expected to inform forthcoming ISSB standards) and the Kunming-Montreal Global Biodiversity Framework, and integration of nature considerations into existing risk management and sustainability processes.
Companies are expected to:
- Integrate nature into governance and oversight – Ensure board and management oversight of nature-related risks and opportunities, embedded into strategy and decision-making
- Assess impacts, dependencies, and risks – Evaluate how operations and value chains interact with nature, including location-specific impacts, dependencies, and resulting financial risks and opportunities
- Develop strategy and risk management processes – Incorporate nature-related risks and opportunities into corporate strategy and enterprise risk management, including mitigation and adaptation measures
- Set targets and monitor performance – Establish measurable objectives, where appropriate, and track progress over time
- Engage with stakeholders and value chains – Collaborate with suppliers, policymakers, and other stakeholders to address systemic nature-related challenges
- Disclose relevant information – Provide consistent, decision-useful disclosures on governance, strategy, risk management and metrics, leveraging frameworks such as TNFD
NBIM notes that its expectations will evolve alongside improvements in data, methodologies, and reporting standards, and will inform its stewardship activities, including company engagement and voting.